(From The Times, by permission.)

I am very glad to come here to-night to wish good luck in the New Year to the Liberals of Birmingham. Good luck is founded on good pluck, and that is what I think you will not fail in. Birmingham Liberals have for twenty years been over-weighted by the influence of remarkable men and by the peculiar turn of events. This great city, which used to be the home of militant Radicalism, which in former days supplied with driving power the cause of natural representation against hereditary privilege, has been captured by the foe. The banner of the House of Lords has been flung out over the sons and grandsons of the men who shook all England in the struggle for the great Reform Bill; and while old injustice has but been replaced by new, while the miseries and the privations of the poor continue in your streets, while the differences between class and class have been even aggravated in the passage of years, Birmingham is held by the enemy and bound to retrogression in its crudest form.

But this is no time for despondency. The Liberal Party must not allow itself to be overawed by the hostile Press which is ranged against it. Boldly and earnestly occupied, the platform will always beat the Press. Still less should we allow ourselves to be perturbed by the fortuitous and sporadic results of by-electoral warfare. I suppose I have fought as many by-elections as most people, and I know that all the advantages lie with the attacking force. The contests are complicated by personal and local influences. The discussions turn upon the incidents of current legislation. There are always grievances to be urged against the Government of the day. After a great victory, all parties, and particularly the Liberals, are prone to a slackening of effort and organisation; after a great defeat all parties, and especially the Tories, are spurred to supreme exertions.

These factors are common to all by-elections, under all Governments; but never, I venture to say, has it been more important to an Opposition to gain by-electoral successes than during the present Parliament. It is their only possible line of activity. In the House of Commons they scarcely show their noses. In divisions they are absent; in debate—well, I do not think we need say much about that; and it is only by a combination of by-electoral incidents properly advertised by the Party Press on the one hand, and the House of Lords' manipulation upon the other, that the Conservative Party are able to keep their heads above water. And when I speak of the importance to the Opposition of by-elections, let me also remind you that never before have by-electoral victories been so important, not only to a great Party, but to a great trade.

Therefore, while I am far from saying that we should be content with recent manifestations of the opinion of the electorate, while I do not at all deny that they involve a sensible reaction of feeling of an unfavourable character, and while I urge the most strenuous exertions upon all concerned in party organisation, I assert that there is no reason, as the history of this country abundantly shows, why a general election, at a well-chosen moment, and upon some clear, broad, simple issue, should not retrieve and restore the whole situation.

There could be no question of a Government, hitherto undisturbed by internal disagreement and consistently supported in the House of Commons by a large, united, and intact majority, being deflected one hair's breadth from its course by the results of by-elections. We have our work to do, and while we have the power to carry it forward, we have no right, even if we had the inclination, to leave it uncompleted. Certainly we shall not be so foolish, or play so false to those who have supported us, as to fight on any ground but that of our own choosing, or at any time but that most advantageous to the general interest of the Progressive cause.

The circumstances of the period are peculiar. The powers of the House of Lords to impede, and by impeding to discredit, the House of Commons are strangely bestowed, strangely limited, and still more strangely exercised. There are little things which they can maul; there are big things they cannot touch; there are Bills which they pass, although they believe them to be wrong; there are Bills which they reject, although they know them to be right. The House of Lords can prevent the trams running over Westminster Bridge; but it cannot prevent a declaration of war. It can reject a Bill prohibiting foreign workmen being brought in to break a British strike; it cannot amend a Bill to give old-age pensions to 600,000 people. It can thwart a Government in the minute details of its legislation; it cannot touch the whole vast business of finance. It can prevent the abolition of the plural voter; but it could not prevent the abolition of the police. It can refuse a Constitution to Ireland, but not, luckily, to Africa.

Lord Lansdowne, in his leadership of the House of Lords during the present Parliament, has put forward claims on its behalf far more important and crude than ever were made by the late Lord Salisbury. No Tory leader in modern times has ever taken so high a view of its rights, and at the same time no one has shown a more modest conception of its duties. In destroying the Education Bill of 1906 the House of Lords asserted its right to resist the opinion of a majority of members of the House of Commons, fresh from election, upon a subject which had been one of the most prominent issues of the election. In rejecting the Licensing Bill of 1908 they have paraded their utter unconcern for the moral welfare of the mass of their fellow-countrymen.

There is one feature in the guidance of the House of Lords by Lord Lansdowne which should specially be noticed, and that is the air of solemn humbug with which this ex-Whig is always at pains to invest its proceedings. The Nonconformist child is forced into the Church school in single-school areas in the name of parents' rights and religious equality. The Licensing Bill is rejected in the highest interests of temperance. Professing to be a bulwark of the commercial classes against Radical and Socialistic legislation, the House of Lords passes an Old-Age Pensions Bill, which it asserts will be fatal alike to public finance and public thrift, a Mines Eight Hours Bill, which it is convinced will cripple British industry, and a Trades Disputes Bill, which it loudly declared tyrannous and immoral. Posing as a Chamber of review remote from popular passion, far from the swaying influences of the electorate, it nevertheless exhibits a taste for cheap electioneering, a subserviency to caucus direction, and a party spirit upon a level with many of the least reputable elective Chambers in the world; and beneath the imposing mask of an assembly of notables backed by the prescription and traditions of centuries we discern the leer of the artful dodger, who has got the straight tip from the party agent.

It is not possible for reasonable men to defend such a system or such an institution. Counter-checks upon a democratic Assembly there may be, perhaps there should be. But those counter-checks should be in the nature of delay, and not in the nature of arrest; they should operate evenly and equally against both political parties, and not against only one of them; and above all they should be counter-checks conceived and employed in the national interest and not in a partisan interest. These abuses and absurdities have now reached a point when it is certain that reform, effective and far-reaching, must be the necessary issue at a general election; and, whatever may be the result of that election, be sure of this, that no Liberal Government will at any future time assume office without securing guarantees that that reform shall be carried out.