ascribed by the Communist propaganda there to the Social-Democratic Government. This propaganda is addressed to the simple folk who do not know that in Russia not merely dearness, but the most desperate hunger prevails. The housing shortage is certainly abating in many of its towns. In Petrograd thousands of houses are empty, as of the population of that city one-third has either starved, or frozen, or fallen victims to pestilence or the Extraordinary Commission. Another third has lied to the villages, and the remaining third still prolongs an anxious existence in the town.
As is the case everywhere else in the world, the building of new houses in Georgia is much impeded by the absence of long credits. This is connected with the general lack of capital, but also with the wretched state of the exchange.
This constituted the weakest point in the economic life of social-democratic Georgia. The Georgian rouble was last year worth less in gold than was formerly worth a kopeck, although its value remained considerably higher than that of a rouble of the Russian Soviet Republic.
As is the case with other countries, the principal cause of the fall in the value of the Georgian rouble is to be looked for in the inflation of the currency, and the excessive output of paper money. One immediate result of the revolution was to reduce considerably the revenue of the State. The old State constitution, being corrupt and inimical to the people, had to be radically reformed, which was not a simple matter, in view of the lack of native experience. The new State machinery did not always work well. It takes time to accustom the emancipated peasant to pay taxes, and the revenue from duties was very slight in consequence of the paralysis of trade. The State possessions alone will suffice to cover the national expenses, when once they are properly exploited, and all taxation would be rendered unnecessary. The Budget of 1919–1920 estimated the income of the State at 749 millions of roubles, of
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