_Bowood, January 7th._--I came here on Tuesday to meet the Duke of Bedford, the Chancellor of the Exchequer, Lord Devon, Lord Auckland, &c. Wood talked to me about his scheme of taxation; he has been in great doubt how he should apportion and increase (as he must) the income-tax, whether _income_ or _property_. After much consideration he appears to have nearly made up his mind to impose three per cent. on Ireland, and to raise it in England to five, or perhaps something less; to announce that the increase is to be temporary, but the three per cent. to be permanent; and then, on the strength of the extension to Ireland, to propose a grant to that country, without which Clarendon cannot get on. Peel will concur in this plan. Great talk here of George Bentinck's resignation of the leadership of the Opposition. John Russell and his colleagues are very sorry for it; nobody can think of a successor to him, and, bad as he is, he seems the best man they have. It seems they detest Disraeli, the only man of talent, and in fact they have nobody; so much so, that Wood thinks they will be obliged to go back to George Bentinck: a very strange state of things! George Bentinck and Stanley disagree on many points, especially on taxation; nevertheless this party, thus acephalous and feeble, have really been fancying they could come into office, and their notion is that if the dissolution had been delayed they would have had a majority, and would have come in. The Duke of Beaufort told Bessborough so very seriously, and Lady Jersey told me the same thing, and that George Bentinck had promised her son Francis a place at the India Board! These things are hardly credible, but they are nevertheless true. [Sidenote: THE HAMPDEN CONTROVERSY.]