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We report on the first measurement of spin-correlation parameters in quasifree electron scattering from vector-polarized deuterium. Polarized electrons were injected into an electron storage ring at a beam energy of 720 MeV. A Siberian snake was employed to preserve longitudinal polarization at the interaction point. Vector-polarized deuterium was produced by an atomic beam source and injected into an open-ended cylindrical cell, internal to the electron storage ring. The spin correlation parameter ${A}_{\mathrm{ed}}^{V}$ was measured for the reaction ${}^{2}\stackrel{\ensuremath{\rightarrow}}{\mathrm{H}}(\stackrel{\ensuremath{\rightarrow}}{e}{,e}^{\ensuremath{'}}n)p$ at a four-momentum transfer squared of 0.21 $(\mathrm{GeV}/c{)}^{2}$ from which a value for the charge form factor of the neutron was extracted.