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Show IllEl'S SPEECH IWFEATIE Secretary of State for India Warns House of Lords on Abuse of Power. SAYS WORLD WATCHES GREAT BRITAIN TODAY No Doubt us to Rejection of Budget, but Struggle Is Just Begun. LONDON, Nov. 2. Lord" Morley's powerful speech was the absorbing ovout. of ui budget debate today in the house- of lords. The secretary of state for India dilalcd on tho importance import-ance of tho struggle as viewed at home and abroad, and lie called attention to j the fact that foreign nations were) watching anxiously the- outcome of the j conflict to sec whether there would be j any change in England's fiscal policy. Ho 4uotea Burke to the effect thut rlic house of lords had no right in auy sense to the disposition nf the public I purse, and contended that, if there were on thine that could not wisely be submitted to a referendum it was (ho budget, with all its coniplexit ie?. In addition, a referendum would weaken weak-en what was most important to maintain main-tain a sense of Tcsponsibilitj- in I lie house of commons. Relation to Socialism. As to the lords contention that their action would arrest, tho wave of socialism, social-ism, ho refused to believe that British artisans wore predatory or socialistic but. even granting that, the misery existing ex-isting hi sonic classes had produced a movement akin to socialism, it was hardly wise of the lords to lake up a position exposing them to tho charge of straiuing the constitution as champions, cham-pions, of the rich again tho poor. "Tho more triumphant the majorily for Lord Lansriowue's amendment,'' said Lord Morley. "the larger the disparity dis-parity between tho numbers of tho cov-e.rnment cov-e.rnment and tho numbers of the opposition, opposi-tion, tho more flagraut will be the po litical scandal.'' Lord Motley concluded his speech with an impressive warning thai, when, tomorrow, the curtain fell on. an empty house, they would know that the note-had note-had been sounded for an angry, and perhaps, a prolonged battle. When the soc.refnrv resumed his seat, thy small minority of liberal peers broke, into enthusiastic en-thusiastic ehecrs. Kothschild Bitter. Lord Uoihschild, liberal unionist, spoke briefly, dwelling on tbb difficulty uf raising capital oven for tho best Kuglisb enterprise?, while .Russia and Japan found it comparatively easy to borrow money. Lord James of Hereford, quoted Pitt. Palnierston and Lord .lohn TJussell against tho lords' claim of power to reject re-ject the budget. Lord Swaythinc de-Veudeil de-Veudeil the budget. He contended (hat British, credit was still (he best in (be world, pointing: that Japan was able to borrow bcause il offered largo interest. ;.Innv other peers spoke, nearly all in favor of I.ansdowne's amendment. The debate was adjourned at midnight. C4rcat, Interest. Aroused. Although (ho result of the division tomorrow is a foregone conclusion, il cannot be doubled thai the house and the country have been ureal lv impressed with the ointorienl skill displayed in the upper house, and especially by the powerful pow-erful arguments of liberal peers against i he course the lords are pursuing. ICyi-dence ICyi-dence of this is beginning to show itself it-self in the conservative press. The Daily Telegraph, which has bce.n a firm advocate of the rejection of the budot. makes tho .significant admission" admis-sion" that the morale of the brilliant debate is not that the house of lords should be abolished or be shorn ot the power of veto, which is essential to its existence, but that it should bo reconstituted, re-constituted, so that its more distinguished distin-guished members should, not be swamped swamp-ed in the lobbies by the peers who have ucver "iven proof of political capacity. |