Necessary measures were taken to provide the population with larger rations of bread, even though it was a surrogate bread ‒ a mix of flour and potatoes; handing out milk on coupons was very carefully controlled so that people who did not have enough money to buy milk on the free market would receive it. Although, by agreement with the German Fishery Department, not everything was taken out to Germany, various materials necessary for three-month fishing were left for the needs of Liepāja fishermen.
The unemployment rate in the city was high and continued to increase rapidly, along with the job cuts at civil enterprises and enterprises ensuring the production for military needs. At the turn of 1918/1919, the unemployed reached around 3,000 people. Ways were sought to provide a living to people in need ‒ free food, a small cash allowance for each family member in the so-called folk kitchens, an opportunity to receive firewood, medicines, and, if necessary, hospital treatment for free. The city was also seeking ways to provide job opportunities.
To reduce the plundering of the city-owned property and state property and ensure safety and order, a service of unarmed city guards was established.
The financial situation of Liepāja was dramatic. To improve the situation, a local loan was taken from the inhabitants, and financial aid was received from the Provisional Government of Latvia. In addition, certain taxes were re-introduced, and municipal bonds were issued twice.
In December, all officials of German civil authorities left Liepāja; only the German Armed Criminal Police remained in the city. Consequently, an essential field of activity appeared related to taking over German institutions and ensuring their functions. The work was systematic and successful.
Along with economic concerns and addressing them, the most complicated phase in the life of Liepāja began when the Soviet Armed Forces were rapidly approaching South Kurzeme. Liepāja was swarmed with uncontrollable flows of refugees from the territories occupied by the Bolsheviks. Despite the extreme situation, the city was actively preparing for the first democratic municipal elections ‒ the elections of the City Council. The Election Committee was submitted 11 lists of candidates; the total number of councilor candidates listed 271. The main competitors in the election battle were the Latvian Social Democratic Workers Party (the LSDSP) and the "Bunda" joint list, the Latvian Citizenship Liepāja joint block of democratic parties, and the list of German voters. The Jewish candidates, except for the "Bunda" members, split into three separate lists.
The elections were held on January 19, 1919. The Social Democrats won convincingly ‒ 43 out of 80 councilor seats, the Latvian Citizenship ‒ 6 seats (61 candidates were on the list), and the German Citizens ‒ 9 seats (41 candidates were on the list).
Several circumstances determined the victory of the Social Democrats. First, the LSDSP was a party experienced in political struggle. Second, due to the falling of Riga into the hands of the Bolsheviks, a significant part of the members of the Executive Committee of the party ‒ the potential of intellectual and practical work ‒ were in Liepāja. Third, the LSDSP consistently and purposefully unmasked the ideas of Bolshevism and its propaganda, which seemed attractive to working people. Fourth, the Liepāja Interim Economic Committee and the Liepāja Interim Council, which active LSDSP members represented, managed to prevent the risk of mass famine even in the extreme situation; they took care of the citizen's health and ensured compliance with the principles of social justice.
The first Provisional Government of Latvia worked in Liepāja from January 7, 1919, to July 7, 1919. At that time, a lot of important resolutions were passed. However, the situation after the coup d'etat of April 16, 1919, which in Liepāja was carried out by the storm-troops of the Baltic Landeswehr under the command of Hans von Manteuffel together with one volunteer corps, was dramatic when the Government fled aboard the steamboat "Saratov" under the protection of the allied countries. The exposition offers to view the portrait gallery of the ministers of the Provisional Government, as well as gain insight into the period of the War of Independence in Latvia through an interactive message.