possessed of magical powers. And our comrades who have been placed in power by the revolution were not only no wizards, but Menshevists, who neither believe themselves nor seek to persuade the outside world that a dictatorship, endows them with magical powers.
However much the Government might strive to keep the tasks which it set itself within the bounds of economic possibilities, the everlasting demands which were pressed upon it surpassed so much the extent of the available income of the State that the printing press was the only resource which was left. Consequently, there was a constant fall in the value of the rouble, and a continual increase in prices.
The evil was still more accentuated by the adverse trade balance. Trade with Russia, which formerly constituted the chief part of the export of tobacco, wine, mineral waters, etc., has been destroyed to a large extent. This rendered maritime trade with Europe, via the Black Sea, all the more important, but this trade had been restriced for a long time owing to the lack of shipping space. Georgia imported from Europa highly valuable industrial products, which occupied little space. In exchange it had to offer only raw material, which, in relation to its value, occupied much shipping space. No wonder the value of imports exceeded the value of exports. In the year 1919 Georgia imported from Western Europe, Turkey, and America, goods to the value of 397 millions of roubles and exported goods to the value of only 93 millions. In the year 1920 the trade balance considerably improved. On the other hand, the inflation still continued.
All this tended to depress the exchange to the lowest point. Still worse than the falling of the rate of exchange, and the dearness which it caused, was the constant fluctuations in the exchange, which occur in all countries with a system of paper money. This makes all business uncommonly difficult. Under these circumstances, long period credits are not to be looked for, and short credits are available only under oppressive condi-
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