In 1931 Oswald Mosley founded the New Party. Early supporters included John Strachey, John Becket, Harold Nicholson, Cyril Joad, William Joyce, Mary Richardson, William Allen, Robert Forgan and A. K. Chesterton, but in the 1931 General Election none of the New Party's candidates were elected. In January 1932 Mosley met Benito Mussolini in Italy. Mosley was impressed by Mussolini's achievements and when he returned to England he disbanded the New Party and replaced it with the British Union of Fascists.
The British Union of Fascists was strongly anti-communist and argued for a programme of economic revival based on government spending and protectionism. Mary Richardson later commented: "I was first attracted to the Blackshirts because I saw in them the courage, the action, the loyalty, the gift of service, and the ability to serve which I had known in the suffrage movement". In October, 1932, Mosley published The Greater Britain, his manifesto for a Fascist state.
Mosley attracted members from other right-wing groups such as the British Fascisti, National Fascists and the Imperial Fascist League. By 1934 the BUF was able to establish its own drinking clubs and football teams. The BUF also gained the support of Lord Rothermere and the Daily Mail. Rothermere wrote an article, Hurrah for the Blackshirts, on 22nd January, 1934, in which he praised Mosley for his "sound, commonsense, Conservative doctrine". Rothermere added: "Timid alarmists all this week have been whimpering that the rapid growth in numbers of the British Blackshirts is preparing the way for a system of rulership by means of steel whips and concentration camps. Very few of these panic-mongers have any personal knowledge of the countries that are already under Blackshirt government. The notion that a permanent reign of terror exists there has been evolved entirely from their own morbid imaginations, fed by sensational propaganda from opponents of the party now in power. As a purely British organization, the Blackshirts will respect those principles of tolerance which are traditional in British politics. They have no prejudice either of class or race. Their recruits are drawn from all social grades and every political party. Young men may join the British Union of Fascists by writing to the Headquarters, King's Road, Chelsea, London, S.W."
According to a MI5 report in 1934 the BUF had between 35,000 and 40,000 active members. It also said that senior service officers and prominent businessmen had joined the party. The Conservative Party became concerned about losing members to the BUF. One of their MPs, Colonel Thomas Moore, wrote in the Daily Mail on 25th April 1934: "Surely there cannot be any fundamental difference of outlook between the Blackshirts and their parents, the Conservatives?" Michael Beaumont, the MP for Aylesbury said the fascists "were respectable, reasonable and intelligent people". Harold Hayles, MP for Hanley, said the BUF contained "some of the most cultured members of our society".
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