[2] A prominent St. John's businessman, Alderdice was appointed to the Legislative Council of Newfoundland (the Upper House of the legislature) in 1924 and became leader of the Liberal-Conservative Progressive Party and the dominion's Prime Minister when his cousin Walter Stanley Monroe retired from the post on August 15, 1928.

[3] Alderdice's first term as prime minister was short-lived, however, as his government lost that year's general election to the Liberals led by Sir Richard Squires.

Alderdice joined with Liberals dissatisfied with Squires to form the United Newfoundland Party with himself as leader.

The Alderdice government was unable to deal with the economic crisis and proposed a partial default on the dominion's debts.

Alderdice was pressured by the British to accept the recommendations without calling a new election or submitting the proposals to a referendum.