"But the mail brings me tidings from Canada which convince me that the French Canadian population at large look upon the course pursued towards Messrs. Cartier and Langevin in the recent distribution of honors as an act of indifference towards themselves. It might be possible, therefore--but you will be the best judge--that the honor now proposed for me might lead to an aggravation of this feeling of dissatisfaction, which arises at the very inopportune moment of the birth of the 'new Dominion.' "I think, therefore, that I should be as deficient in public duty as in generosity, if I did not evince my gratitude for your unsolicited remembrance by saying that, should the difficulty I allude to be found really to exist, I shall not feel myself slighted or aggrieved should your kindness proceed no further, pending such an unfortunate state of feeling. "I ought to add, that my late most kind and indulgent friend, the Duke of Newcastle, suggested some little time before his death an even higher reward for the services, which he alone knew the real extent of; but at my request it was postponed until--all the manifold difficulties being one by one cleared away--the great question of policy which he had so much at heart should be finally realized in legislation. "Having thus been led almost, to rely upon some adequate recognition of several years' gratuitous and arduous exertion on both sides of the Atlantic, I feel the sacrifice I propose to make. But a desire to avoid aggravating this unfortunate misunderstanding induces me to trouble you now. "I have the honour to be, dear Sir, "Yours very faithfully and obliged, "E. W. WATKIN. "THE RT. HON. THE CHANCELLOR OF THE EXCHEQUER." "DOWNING STREET, S.W. "_August 8, 1867_. "DEAR SIR, "I have had the honor of receiving your letter of the 3rd instant, in which you refer to the rumoured intention of Her Majesty's Government to recommend your name to the Queen for the honor of knighthood, in consideration of services connected with the International Colonial Railway, and the influence of that undertaking on the union of the British North American Provinces; and in which you state your apprehension, that such an intention, in consequence of the recent intelligence from Canada with respect to the distribution of honors, might prove embarrassing to the Government. "Under that impression you have, in a manner highly creditable to yourself, and most considerate to the Government, stated that you should not feel yourself slighted or aggrieved, if the views of Her Majesty's Government towards yourself were not proceeded with pending such an unfortunate feeling in Canada.