It could not be doubted that both Sir Hugh Gough and Sir Le Fleming Senhouse were exceedingly averse to granting any terms to the Chinese until our troops should have got possession of the city, and established themselves upon the fortified hill within the walls, which would have secured our troops against any possible surprise or treachery, and would have exercised a salutary moral effect upon the government, without causing any wanton damage to the town or annoyance to the people. In fact, it could not have failed to humble the pride of the Chinese, when they knew that a large garrison of foreign soldiers had made themselves masters of one of the principal cities in the empire, supposed to contain nearly a million of inhabitants. Various stories were current concerning the mode in which the ransom of the city was first proposed. One of the most credited accounts was that the Hong merchants were ordered by the authorities to go and make terms for the ransom of the town, in some way or other, under pain of severe displeasure or punishment. It was said that they were authorized to go as far as _ten_ millions of dollars, if a less sum would not suffice; but on no account to return without effecting the object. They must have known that they would themselves have to pay the greater part of the amount, and naturally wished to make the best bargain they could. It is said that in the first instance they pulled along side one of our men-of-war, and offered three millions for the ransom of the city. As they evidently appeared to be in a hurry to make a bargain of some sort or other, they were told that a much larger sum would be required. Four millions were then proposed, and then five millions; and at length, in great trepidation, and with many protestations of poverty, they raised the offer to six millions. In the first instance they were scarcely thought to be in earnest, but as the thing now really looked serious, they were directed to go and confer with Capt. Elliot. It was not difficult to persuade him to grant a truce until twelve o'clock the following day, the 27th; and, in the intervening time, terms were definitively agreed upon. The twenty-four hours' truce, in the first instance, was quite unknown to Sir Hugh Gough, to whom an officer of the navy had been sent in the afternoon to convey the information; but having missed his way, and wandered all night, he only reached the head quarters, as before stated, within half an hour of the time the batteries were to open. The fact of the truce having been granted was now sufficient to account for the Chinese having continued to display the white flag from the walls the preceding day, after it had been lowered by Sir Hugh Gough upon the heights.