the Revenue has been so magnificent and the economy so great that it is expected Lowe will come out next week with a surplus of more than three millions, and great reduction of taxes. In the face of such a position, an English Ministry is of course omnipotent; and we like others must accept their fiat. In only one instance have they received a check, and that has been on Cardwell's proposals about shelving officers and shunting numbers on the half pay line: the army men got their backs up, and the kind of influence which they can yield being also of its kind almost omnipotent, Cardwell and Lowe had to cave in. Since last mail we had a long interview with Gladstone. Not of course as an appeal against Granville, but to tell him that we could not feel satisfied without laying our case before the man who is really responsible for the policy of England. He listened to us civilly and patiently --- admitted the responsibility of England for the war but plainly gave us to understand that they knew exactly what they were doing and had resolved to carry their decision through. As soon as I saw this Prime Minister, and knew that with his eyes intently watching us he was still sternly resolved not to yield, I gave up the ghost as far as the regiment is concerned: and here we have stuck. I am myself, after the most complete consideration I can give to the subject, thoroughly convinced that we shall not get an Imperial soldier; and according to the habit of my mind I cease to fight for it. If I had my own way entirely I should have gone Granville at once and tried something else. In his speech on the Emigration question Gladstone had said something about Lord Granville being in communication with the Colonies about guaranteeing the repayment of advances made here for Emigration: but we have never been able to ascertain what was meant. Magniac went to Monsell who said he had never heard of it: Monsell went to Ld Granville, who went