Capital at the Dawn of a New Age

The celebration of the millennium of the settlement of Iceland, in 1874, was an important event for Reykjavík. The town was decorated, roads were widened and repaired, Austurvöllur was made into a town square, with a statue by Icelandic-Danish sculptor Bertil Thorvaldsen in its centre, and soon after this Reykjavík's first street lighting was installed. In 1881 Parliament House was built by the square. Nationalistic trends were growing in the town, reflected in more social and cultural activities, and more publications. The new self-respect gained by Reykjavík people could be seen in the construction of impressive wooden houses in the neoclassical style. And landless workers of the town started to build themselves houses of stone instead of traditional turf homes.

The people of Reykjavík celebrated the turn of the century at the beginning of the year 1901. Great technical advances in the late 19th and early 20th century stimulated economic growth in Europe, and changed people's ideas. In Iceland too, progressive and scientific ideas had caught on, as may be seen from poems composed to celebrate the turn of the century. The first machines (paraffin oil (kerosene) engines) had arrived in Reykjavík in 1897, and before long motorised and steam-powered fishing vessels would follow.

In 1904, Iceland was granted partial autonomy, Home Rule. Iceland had its own minister, who was answerable to parliament, and government offices were established in Reykjavík. Thus Reykjavík took over Copenhagen's historic role as capital of Iceland. This evolution was completed when Iceland attained autonomy under the Danish crown in 1918. Iceland's traditional rural society was being transformed into a modern urban-industrial society, with Reykjavík as its oversized centre. People migrated to Reykjavík en masse, leading to population growth which lasted almost continuously throughout the 20th century.

With rising population and industrialisation at the beginning of the new century, Reykjavík Town Council could no longer shirk responsibilities. Various new projects had to be undertaken. The office of mayor was instituted in 1908. The first major project was the provision of a water supply in 1909. A system of drains was also laid, and hygiene improved dramatically. In 1910, the Reykjavík gasworks was founded; this was Reykjavík's first power plant. This was followed by the Elliðaár hydro-electric plant in 1921. In 1912 tarmac was laid on Austurstræti, and at around that time the first sidewalks were constructed.

The town council's most ambitious project was the construction of a harbour in 1913-17.