During its initial phase, it was heavily influenced by Proudhonism and rejected revolutionary Marxism.

[1] Initially the party adopted a passive tactic towards the military dictatorship.

One of the main leaders of the party at the time, Ramado Curto, was commissioned by the government to formulate a labour code.

From 1930 he worked with the reformist trade unions in the corporativist National Economic Committee.

After the establishment of Estado Novo by António de Oliveira Salazar in March 1933 the party was banned.