thousand recorded in June 1940. According to Alla Skvortsova, the Romanian government, either directly or through the banking system, encouraged the development of industry in the areas of prewar Romania, while hindering the process in new territories. As a consequence, even Bessarabian entrepreneurs preferred to invest their capital in those areas instead of using it within the region. Local industry faced fierce competition from larger Romanian companies, which had access to preferential rail tariffs, limited credit to local entrepreneurs, and flooded the local market with cheaper industrial goods produced in Romania or imported from abroad. Nevertheless, some new small-scale industrial enterprises were established in the 1920s, using primarily local raw materials and producing for the local market. The total engine power rose from 7.8 thousand hp in 1925 to 12.2 thousand in 1929. Although the number of industrial enterprises more than doubled after 1918, small semi-handicraft production prevailed, seldom using hired labor: in 1930 there were an average of only 2.4 employees per enterprise. During the 22 years of Romanian rule, only one large enterprise was built in Bessarabia: the Bălți sugar plant. According to Alla Skvortsova, not all new enterprises survived for long, and the Great Depression had a particularly strong impact on the region, many of the companies going bankrupt or closing in 1929–1933. Governmental policy, influenced by the banking system and the industrial cartels, prevented a rebound, the industry of the Old Kingdom again receiving preferential treatment. The main factors that affected the development of Bessarabia in the 1930s were severe credit restrictions, increases in transport tariffs and customs restrictions, and special tax policies. The tax burden was notably high, with enterprises required to fully provide the assigned tax agent with housing, heating, lighting, and office space. Bessarabia was reduced mostly to a supplier of raw materials and a market for industrial goods of Romanian or foreign origin. By the end of the 1930s, the only industrial sectors that managed to rebound were the food and woodworking industries, the rest witnessing either stagnation or a decrease compared to pre-Depression levels. Most industrial facilities in the food industry worked significantly below their installed capacity even in prosperous years such as 1937. Several large factories, such as the Basarabeasca, Cetatea Albă, Florești and Tighina, railway workshops, the Cetatea Albă and Chișinău textile and knitwear factories and the Cetatea Albă canning factory and distillery were dismantled and relocated to the