The cabinet was a minority cabinet with a weak parliamentary position. Its governing declaration ("regjerinserklæring") which started by saying that the ultimate goal of the Labour Party was to create a socialist system in Norway was met with strong criticism from the other parties. The Labour cabinet also caused concern in the financial industry which was already struggling. Bergens Privatbank was one of the banks which was striving to survive. Governor of the Central Bank of Norway Nicolai Rygg requested that the government should pay for a guarantee fund for the banks and when Hornsrud declined, Rygg petioned the leader of the Liberal Party Johan Ludwig Mowinckel and other non-socialist party leaders to cause the downfall of the Hornsrud cabinet. On 7February, Mowinckel presented a motion of no confidence in the Storting. The next day the motion was approved with 86 votes against 63. Except for the members of the Labour Party only the three members of the Communist Party and one from the Radical People's Party voted against the motion. The government resigned on 15February 1928.