conversation with John Russell and Stanley, who strongly deprecated this intention, but it was too late to arrange or compromise anything then. The debate came on; the proposition was made in a very aggravating speech by Lyndhurst, and on its being carried Lord Grey threw up the Bill and the Government in a passion. It is the more remarkable that they should have taken this course at once, because they certainly had very strong reason to doubt whether the King would consent to a creation of Peers, though they probably thought he might be bullied upon an occasion which they fancied they could turn to great account; but he was stout and would not hear of it. [Page Head: POSITION OF PARTIES.] The day after the debate Grey and Brougham went down to Windsor and proposed to the King to make fifty Peers. They took with them a minute of Cabinet signed by all the members except the Duke of Richmond. Palmerston proposed it in Cabinet, and Melbourne made no objection. His Majesty took till the next day to consider, when he accepted their resignations, which was the alternative they gave him. At the levee the same day nothing occurred; the King hardly spoke to the Duke, but he afterwards saw Lyndhurst (having sent for him). I do not know what passed between them, but the Duke of Wellington was soon sent for. The Duke and Lyndhurst endeavoured to prevail on Peel to take the Government upon himself, and the former offered to act in any capacity in which he could be useful, but Peel would not. Some communication also took place between Lyndhurst and Harrowby, but the latter declared at once he would support the new Government, but not take office. When Peel finally declined, the Duke accepted, and yesterday at three o'clock he went to St. James's. The King saw Peel and the Speaker. Nothing is known of the formation of the Cabinet, but the reports were first that Alexander Baring was to be Chancellor of the Exchequer, and since that he has refused on account of his health, and that Lyndhurst is to go to the King's Bench, Tenterden to retire, and the Great Seal to be put in commission.