History of Latvia forests were another export revenue source. On March 27, 1919 the Latvian rublis was introduced with an exchange rate of 1 Latvian rublis equal to 1 ostruble, 2 German marks and 1,5 czar rubles. On March 18, 1920 Latvian rublis was made the only legal currency. Due to high inflation, the new Latvian lats currency was introduced at a rate 1 lat to 50 rublis. In 1923 the Bank of Latvia was established and lats replaced rublis in 1925. Between 1923 and 1930 state budget was with a surplus. On average 25,5% went to defense, 11,2% to education and 23,4%
State continuity of the Baltic states State continuity of the Baltic states State continuity of the Baltic states describes the continuity of the Baltic states as legal entities under international law while under Soviet rule and German occupation from 1940 to 1991. The prevailing opinion accepts the Baltic thesis of illegal occupation and the actions of the USSR are regarded as contrary to international law in general and to the bilateral treaties between the USSR and the Baltic states in particular. This legal continuity has been recognised by most Western powers and is reflected in their state practice. The application of the Stimson Doctrine by the