History of Lithuania 1920, captured Vilnius the following day, and established a short-lived Republic of Central Lithuania in eastern Lithuania on October 12, 1920. The "Republic" was a part of Piłsudski's federalist scheme, which never materialized due to opposition from both Polish and Lithuanian nationalists. For 19 years, Kaunas was the temporary capital of Lithuania while the Vilnius region remained under Polish administration. The League of Nations attempted to mediate the dispute, and Paul Hymans proposed plans for a Polish–Lithuanian union, but negotiations broke down as neither side could agree to a compromise. Central Lithuania held a general election in 1922 that was
History of the Jews in Lithuania "kahals" were not successful. The impoverished Jewish merchants, having no capital of their own, were compelled to borrow money from the nobility, from churches, congregations, monasteries, and various religious orders. Loans from the latter were usually for an unlimited period and were secured by mortgages on the real estate of the "kahal". The "kahals" thus became hopelessly indebted to the clergy and the nobility. In 1792 the Jewish population of Lithuania was estimated at 250,000 (as compared with 120,000 in 1569). The whole of the commerce and industries of Lithuania, now rapidly declining, was in the hands of the Jews.