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Despite losing the general election, Ralston was appointed to the cabinet by Prime Minister William Lyon Mackenzie King and became the Minister of National Defence on October 8.
Prime Minister King created a seat for Ralston by appointing the MP for Shelburne — Yarmouth, Paul Lacombe Hatfield, to the Senate, thus opening the riding for a by-election.
Ralston won by acclaimation on November 2, 1926, entering the 16th Parliament.

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