“Grace” is set in Dublin, Ireland at the beginning of the 20th century. During this time, Irish nationalists were fighting for freedom from England’s colonial rule, in large part due to the widespread poverty and exploitation that they saw as a result of England’s ongoing colonist influence. This nationalist movement was primarily made up of Catholics, while “loyalists” (or Irish people who wanted to remain a part of Britain) were primarily Protestant.
This conflict shows up in “Grace” in a few different ways. First, when discussing the Catholic retreat that Kernan’s friends (Power, Cunningham, and M’Coy) hope he will attend with them, they extol the virtues of the Catholic Church and denounce Protestantism. This is somewhat ironic, as Kernan himself was raised Protestant and only converted to Catholicism because his wife was Catholic (and likely wanted to be married in a Catholic Church). In having Kernan move between both socio-religious worlds with no real effects on his life or spirituality, Joyce is making the point that Catholicism and Protestantism are not as different as many Irish people made them out to be.
Joyce also includes allusions to The Irish Times and The Freeman’s Journal in the story. These two periodicals both published news related to the fight for independence. It is notable that The Irish Times was as a Protestant nationalist publication and The Freeman’s Journal was more closely aligned with the Catholic Church—again, Joyce is highlighting how it is possible for Protestant and Catholics to work together for an independent state.
