The party was formed on 28 July 1930 by the merger of the German Democratic Party with the People's National Reich Association (the political wing of the Young German Order).
[2] The merger of the social liberalism of the DDP with the nationalist corporatism of the Young German Order did not prove a successful one: the party lost seats drastically in the 1930 election from its showing in 1928, and the People's National Reich Association's Reichstag delegates soon seceded from the party, leaving it essentially the DDP under a new name.
The party continued to compete in parliamentary elections, with little success.
Pro-DStP civil servants defected to the Nazis out of fear for their jobs.
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