Came to town last night from Newmarket, and found things in a fine state. Althorp had resigned three days ago; his resignation was accepted, on which Lord Grey resigned too. Both of them explained in Parliament last night, Lord Grey, as they tell me, in a very moving and gentlemanlike speech, admirably delivered. The Duke of Wellington made a violent attack upon him in reply, which it is thought he might as well have omitted. (The Duke's speech gave great disgust to many even of his own party, and was afterwards assigned as a reason by Stanley and his friends for not taking office with the Duke.) Nobody knows what is to happen. The King sent for Melbourne, and his nephew, John Ponsonby, told me last night he believed he would endeavour to carry on the Government; but whether he does or not it can't last; the Whig Government is virtually at an end. The Tories, who were shouting the night before last, are considerably disappointed that the King did not instantly avail himself of Lord Grey's resignation to send for them, or at least for Peel. I don't suppose, however, that it is from any predilection for the Whigs that he tries to bolster up this Government, but he is said to have an exceeding horror of a dissolution, and it is just possible he may be acting under some good advice surreptitiously conveyed to him, for under all circumstances I think he is taking the most prudent part he can. It is very essential that he should have no hand in the dissolution of this Cabinet, and if he does his best to reconstruct it, and gives the remaining Ministers a fair trial, he will have a good right to call upon the House of Commons and the country to support him in any ulterior measures that circumstances may compel him to adopt. [Page Head: CAUSES OF THE RETIREMENT OF LORD GREY.]