Latvia parts of the Russian Empire, which may have been influenced by the Protestant religion of the inhabitants. World War I devastated the territory of what became the state of Latvia, and other western parts of the Russian Empire. Demands for self-determination were initially confined to autonomy, until a power vacuum was created by the Russian Revolution in 1917, followed by the Treaty of Brest-Litovsk between Russia and Germany in March 1918, then the Allied armistice with Germany on 11 November 1918. On 18 November 1918, in Riga, the People's Council of Latvia proclaimed the independence of the new country, with
History of Latvia state took control over cooperative societies and associations. Dairy industry was placed under control of Central Union of Dairy Farmers. On April 9, 1935 a state controlled Credit Bank of Latvia was created which reduced role of foreign capital by creating many state owned industry monopolies and joint stock companies. Buyouts and liquidations of foreign, Baltic German and Jewish owned companies become a norm. In place of many competing companies large state owned companies were created. In 1939 state owned 38 such companies. The new JSC Vairogs produced railway carriages and Ford-Vairogs automobiles under Ford licence. VEF made world's smallest