When World War I ended and the Republic of Lithuania was established, Lithuanian Jews were permitted to return home. The Jewish community of Rokiškis numbered 2,013 in 1923. Rokiškis developed rapidly after World War I but under different economic conditions. Before the war, for example, Rokiškis could trade with nearby Dvinsk/Daugavpils/Dunaburg, Latvia, to which it was connected by a rail line. During the 1920s, however, Lithuania's border with Latvia was closed. As a result, trade increased with towns to the west which were connected by rail lines, such as Panevėžys/Ponevizh, Šiauliai/Shavli, and Kaunas/Kovno. (There was also a small gauge rail line to Pandėlys/Ponidel.) Prior to World War I, only 3 stores had been Christian-owned. After the war, however, many Lithuanians from surrounding villages came to settle in Rokiškis and open stores. Further, Lithuanian cooperatives came into being, trade in flax and produce was nationalized, and other factors caused a severe economic decline for the Jews. Many Jewish businesses went bankrupt in 1925 and between 1926 and 1930 many Jewish families emigrated to South Africa, the United States of America, and Palestine. In 1939 there were 3,500 Jews in Rokiškis (40% of the total population). They were mostly Chabad Chasidim. During the period of Lithuanian independence (1918–1940) there were two Hebrew schools.