Temporary capital of Lithuania during the invasion of Poland, to Lithuania according to the Soviet–Lithuanian Mutual Assistance Treaty. Since then Vilnius has been the capital of the Lithuanian SSR and then independent Lithuania. Lithuania refused to have diplomatic relations between Poland and Lithuania until the ultimatum of 1938. Railroad traffic, telegraph lines or even mail could not cross the Polish–Lithuanian border. Lithuania continued to declare Vilnius as its capital in all official documents, including the constitution. Since the city was controlled by Poland, all Lithuanian authorities were transferred to the city of Kaunas, which became the seat of the government. To reconcile reality with
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.