_Saturday, April 20, 1861._--There was an interesting debate last night in the House of Lords, brought on by Lord Ellenborough, on the Roman question, in which Clarendon and Lord Derby also took part. He asked whether our Government was engaged in any correspondence with the object of reconciling the spiritual independence of the See of Rome with the exercise of temporal sovereignty by the King of Italy within the Roman territory. He thought Rome was the fitting capital of a united Italy, and that the occupation by the French of that city precluded that unity. He then discussed the Venetian question, and though he admitted the right of Austria to maintain herself in Italy, by virtue of the Congress of Vienna, he considered the time was come when she should reconcile herself with the Italian people. Holding these views, however, he deprecated the interference of the Italians in Hungary. Lord Wodehouse replied that we were not in any correspondence on the Roman question, and that H.M.’s Government considered it was neither becoming nor desirable for a Protestant country to take the initiative in the matter. The whole question depended upon the withdrawal of the French troops from Rome, and H.M.’s Government had not disguised their opinion that it was desirable those troops should be withdrawn. Clarendon thought Rome the proper capital, and believed the Emperor Napoleon to be sincerely desirous of withdrawing his troops whenever it would be safe for him to do so, both as regarded the Pope and his own position in France, where popular opinion was in favour of their remaining. Derby said much the same thing, but expressed his opinion that it would have been far better to establish a Northern and Southern Kingdom of Italy, in which case Rome would have lain between the two countries and the solution of the difficulty would have been easy. As, however, there was only one kingdom, the desire to have Rome for their capital was quite natural; but it was a desire that created the greatest embarrassment. LOSS OF THE COTTON SUPPLY (1861). =Source.=--Ashley’s _Life of Viscount Palmerston_, vol. ii., pp. 210, 211. (Richard Bentley and Son, 1874.) LETTER FROM LORD PALMERSTON TO THE PRESIDENT OF THE BOARD OF TRADE. _June 7, 1861._ MY DEAR MILNER GIBSON.