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The party was established in 1916 as a breakaway from the Farmers' Party. In the August 1916 elections to the new upper house of the Althing, the party finished third with 22% of the vote. However, by the October elections to both houses, its vote share had fallen to just 4%, with the party winning just one seat in each of the houses. Following the elections it merged with the Farmers' Party to form the Progressive Party.