Leaving the town by the western gateway, we ride for about a mile parallel to the seashore between high cactus hedges, and suddenly find ourselves apparently transported into the heart of Europe. Running straight back from the beach for about half a mile, and sloping upward for about a hundred feet in that distance, to the base of the rocky sides of Carmel, runs the village street. On each side of it is a path-way, with a double row of shade-trees, and behind them a series of white stone houses, of one and two stories, generally with tiled roofs, each surrounded with its garden, and each with a text in German engraved over the doorway. There is another, smaller, parallel street. The whole settlement contains about sixty houses and three hundred inhabitants. The English, American, and German vice-consuls are all colonists. There is a skilled physician, an architect, and engineer in the colony, an excellent hotel, a school, and meeting-house. The German government subscribes two thirds and the colonists one third of the funds required for the school. Some of the colonists are in business, and have stores in Haifa. There is also a good store in the colony, where all the most important trades are represented. There is one wind grist, and one steam mill, the latter in process of erection. There is a manufactory of olive-oil soap, the export of which to America is yearly increasing, and now amounts to 50,000 pounds, and which may be purchased in New York by such of your readers as have a fancy to wash their hands with soap direct from the Holy Land, made from the oil of the olives of Carmel, at F. B. Nichols's, 62 William Street. There is also a factory for the manufacture of articles from olive wood. Where Carmel rises abruptly from the upper end of the street, its rocky sides have been terraced to the summit, and about a hundred acres are devoted to the cultivation of the vine. Unfortunately, the varieties which have been imported from Germany all suffer severely from mildew. I have therefore sent to the United States for Concords and some of the hardier American varieties. Along the lower slopes are thick groves of olives. Scarped along the rugged mountain-side leads the road to the monastery, distant about a mile and a half. Situated about five hundred feet above the sea, it forms a conspicuous object in the landscape as seen from the colony.