'As you well know, Hamburg is a free town and a republic of itself, governed by the Burgomaster and a senate. It is one of the three remaining Hanse towns.... The loss suffered here is to be now stated, it is fairly computed at 12,000,000 pounds sterling; of this 8,000,000 falls on individuals and foreign and British insurance offices; 4,000,000 on the city of Hamburg. The foreign insurance offices have paid very well; the Hamburg, that is the individual who had such an office, is ruined and can pay nothing; the city of Hamburg will borrow 4,000,000, and raise the interest by a tax on the houses of the city throughout. The cause of this is that Hamburg allowed no foreign insurance to be made for a house, but the whole city is an insurance office against the destruction of a house by fire. What the house contains as furniture, &c., the city has nothing to do with. So each individual will receive for his house destroyed by fire its value from the city, but he will be taxed to pay the interests of the money. This may not be quite clear, it requires rather more words to make it so. I hope to find a letter from you in Berlin.--Yours, 'CHARLES.' * * * * * The next letter was written from Berlin. * * * * * 'I arrived here this morning at four o'clock from Hamburg to Boitzenburg, where we slept. 'I went down to the King (at Sans Souci) by railroad; he was at dinner, I got some brought to me by his old servant. The King soon came out of his dining-room to me and gave me a most hearty welcome, and took me into the garden, where all the court ladies and gentlemen were gathered; presented me to the Queen, both asked after and about you and were very kind. I can hardly say how much interest I felt in being for a few moments at Sans Souci again; it is a most beautiful place. It is wonderful to think of its creation, but there will be speedy decay and dissolution, if it is not ere long repaired. The Palace is small, and not worthy the name of a Palace, but beautiful. I am not expected to remain long I think, from what I gather.