Yesterday I met the Chancellor at the Castle at a Council. He took me aside, and said that he wished to tell me what had passed, and to show me the correspondence. He then began, and said that after the Duke's visit Lady L. had told the Chancellor of his abuse of him and the Government, but had suppressed the rest, thinking it was better not to tell him, as it would put him in a very embarrassing position, and contenting herself with saying she would never receive the Duke again upon the other grounds, which were quite sufficient; but that some time after reports reached her from various quarters (Lord Grey, Lord Durham, Lord Dudley, and several others) that the Duke went about talking of her in the most gross and impertinent manner. Upon hearing this, she thought it right to tell the Chancellor the other part of his conduct which she had hitherto concealed, and this she did in general terms, viz. that he had been very insolent and made an attack upon her. The Chancellor was exceedingly incensed, but he said after much consideration he thought it better to let the matter drop; a long time had elapsed since the offence was committed; all communication had ceased between all the parties; and he felt the ridicule and inconvenience of putting himself (holding the high office he did) in personal collision with a Royal Duke, besides the annoyance which it would be to Lady Lyndhurst to become publicly the subject of such a quarrel. There, then, he let the matter rest, but about a fortnight ago he received a letter from the Duke enclosing a newspaper to this effect, as well as I can recollect it, for I was obliged to read the letter in such a hurried way that I could not bring the exact contents away with me, though I am sure I do not err in stating their sense:-- 'My Lord,--I think it necessary to enclose to your Lordship a newspaper containing a paragraph which I have marked, and which relates to a pretended transaction in your Lordship's house. I think it necessary and proper to contradict this statement, which I need not say is a gross falsehood, and I wish, therefore, to have the authority of Lady Lyndhurst for contradicting it. 'I am, my Lord, yours sincerely, 'Ernest.'