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False.

By 1900, there were about one hundred (100) settlement houses in the United States.

The first settlement was open in Chicago in 1886 and derived by a model born in the United Kingdom in 1884 named Toynbee Hall. While most of the settlements were in the large cities, it was possible to find at least one in the majority of the small town.

This movement started as a response to the growing poverty of the newborn industrial workers, operating as a tool to achieve integration and teach American value to the many immigrants that arrived in that days in search of a better life.