_June 24th._--We are on the brink of a crisis and one of a most fearful nature. This sugar question is going to destroy this Government, as former sugar questions have destroyed former Governments. Until yesterday I was satisfied that Government would not think it necessary to resign if beaten on Pakington's amendment, and Hobhouse, whom I met the other day, seemed to think they need not. Many of them, however, thought differently, and yesterday there was a Cabinet, at which they came to a unanimous resolution to resign. The Duke of Bedford thought as I had done, and strongly urged Lord John not to resign; this he told me yesterday morning, but that he had not been able to convince him. After I saw him I went to Graham; I found him in great alarm at the state of affairs and the prospect of the country. He said that he expected the Government would be beaten, and that he did not see how they could go on if they were; he approved of their resigning; that it was a vote of censure or want of confidence, and that in fact they had lost all hold of the House of Commons; that they had done so in great measure by their own blunders and follies; and he then enumerated many of these; and he was satisfied they had so lost credit and power that they could not go on, and therefore if they survived this vote they would fall by some other. He then told me that Peel's friends had separated themselves from him, and would vote with the Protectionists; he and Peel should support the Government, but he did not know for certain of any others who would go with them; he should do so with great reluctance he owned, but he would not turn them out. The rest of the Peelites are angry with Peel for supporting the Government as he had done; they were impatient, could no longer be restrained, and were resolved to join the Protectionists. Graham had had no communication with any of them, but he concluded they were and must be ready to join Stanley and take office under him if he invited them. He looked on Stanley's coming into office as inevitable. I asked him what his Cabinet would be: he supposed principally Peel's old Cabinet with George Bentinck and Disraeli; and he then descanted on all the evils and dangers to be apprehended from their assumption of power however brief, much as he did in our former conversation; the great impetus it would give to reform, and the vast power the Radical and subversive interest would acquire; in fact, his anticipations are of the most serious and gloomy character--foreseeing the downfall of the Church, the House of Lords, and the Crown itself. In the afternoon I told the Duke of Bedford what he had said of the defection of the Peelites from their chief, and that this event would be openly manifested in the course of the present debate. The Duke was to dine at the Palace, where I knew he would have a great deal of conversation with the Queen, so I called on him this morning to hear what had passed. She