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The second general election of 1927 followed tight political arithmetic within Dáil Éireann. Only three seats separated the two largest parties in the 5th Dáil, Cumann na nGaedheal and Fianna Fáil, and the government was very unstable. Fianna Fáil entered the Dáil in August, and days later gave its support to motion of no confidence in the Cumann na nGaedheal government proposed by Labour Party leader Thomas Johnson. Johnson had hoped to form a government with the National League and the support of Fianna Fáil. The Cumann na nGaedheal government had the backing of the Farmers' Party and most of the Independent TDs. When the vote was taken, John Jinks, a National League TD, failed to attend. The Deputy Leader of the Labour Party, Thomas J. O'Connell, was in Canada and also was unable to participate in the crucial vote. As a result, the vote was a tie and the Ceann Comhairle voted with the government. The motion failed.
On 25 August, Cumann na nGaedheal won two by-elections. W. T. Cosgrave called a general election in the hope of securing an increased majority. Cumann na nGaedheal recruited four TDs who had supported Cosgrave in the vote of confidence to stand as candidates for the party: Bryan Cooper (Dublin County), John Daly (Cork East), Myles Keogh (Dublin South) and Vincent Rice (Dublin South). Fianna Fáil campaigned on a promise of self-sufficiency. The Labour Party had done well on its last outing and was hoping, and was predicted, to win extra seats, in spite of internal divisions. The Farmers' Party represented the needs of agricultural labourers. Sinn Féin, weakened after de Valera had split to form Fianna Fáil, had been reduced to five seats in the June 1927 election, and did not contest the September 1927 election, due to lack of financial assets.
^ Although Jim Larkin won a seat in Dublin North, he was almost immediately disqualified from the position due to declaring bankruptcy as a result of losing a libel case brought against him by William O'Brien. As a result, a by-election was held for his seat on 3 April 1928. The winner of that by-election was Vincent Rice (CnaG), who defeated Kathleen Clarke (FF) and Larkin.