Smith-Dorrien's last position was as Governor of Gibraltar from 9 July 1918 until 26 May 1923, where he introduced an element of democracy and closed some brothels. According to Wyndham Childs in the summer of 1918, Smith-Dorrien tried, and nearly succeeded, in uniting the Comrades of the Great War, the National Association of Discharged Sailors and Soldiers, and the National Federation of Discharged and Demobilized Sailors and Soldiers into one organisation. The merger later took place in 1921 to form the British Legion, under the influence of Field Marshal Douglas Haig.