The LHD was formed on 1 October 1933, with Otto Schaedler, Alois Vogt and Carl Freiherr von Vogelsang as leading members. Although the party was initially formed on the basis of an authoritarian corporate state similar to that of Austria under Engelbert Dollfuss, it quickly moved towards that of National socialism. The people behind the Rotter kidnapping also became active in the party following their release from prison.[2] This move towards Nazism caused several founding members, such as Richard Meier and Martin Risch to abandon the party.[2][3]
The party ran an antisemitic campaign within Liechtenstein and advocated against the government's naturalization policies.[2] In addition, the party also developed a cult of personality similar to that of Nazi Germany, with the phrase 'Heil Otto!' being used towards Schaedler within the party.[4] The party's primary aims were the abolition of party politics, ending the customs union with Switzerland, and alignment towards Germany, with the eventual goal of Liechtenstein's annexation into the country.[5] The party sought to gain contacts within Nazi Germany, particularly within the Verein für Deutsche Kulturbeziehungen im Ausland (VDA). In doing so, Rudolf Schädler, Alois Vogt and Carl Freiherr von Vogelsang were guests at the 1934 Nuremberg rally.[6] In a speech on 18 March 1934, both prime ministerJosef Hoop and president of the LandtagAnton Frommelt spoke out against the LHD.[2]
In 1935, the LHD formed an alliance with the Christian-Social People's Party (VP) which was referred to as the 'National Opposition'. This alliance pushed through an initiative to introduce proportional representation within the country.[7] However, the subsequent 1935 Liechtenstein electoral system referendum was narrowly rejected by voters.[8] Motivated by a desire to unite the opposition prior to the 1936 Liechtenstein general election, the VP and LHD merged on 1 January 1936 to form the Patriotic Union.[7][9] Despite the LHD being the smaller of the two parties, the new Patriotic Union was heavily influenced by it, with Otto Schaedler becoming the party president, and Alois Vogt the party secretary.[10] In addition, the two parties' respective newspapers merged to form the Liechtensteiner Vaterland with Carl Freiherr von Vogelsang as its editor.[11]