Historically, the Liberal and Reform parties had competed against each other, but from 1931 until 1935 a United–Reform Coalition held power in New Zealand. The coalition went into the 1935 election under the title of the "National Political Federation", a name adopted to indicate that the grouping intended to represent New Zealanders from all backgrounds (in contrast to the previous situation, where United served city-dwellers and Reform served farmers). However, because of the effects of the Great Depression and a perception that the existing coalition government had handled the situation poorly, the National Political Federation lost heavily in 1935 to the Labour Party, the rise of which had prompted the alliance. The two parties were cut down to 19 seats between them. Another factor was a third party, the Democrat Party formed by Albert Davy, a former organiser for the coalition who disapproved of the "socialist" measures that the coalition had introduced. The new party split the conservative vote and aided Labour's victory.