the power of refining sugar in bond--a drop of water to one dying of thirst. I think it will go down, and make the Government safe. This I have all along thought they would be, and every day seems to confirm this opinion. They have got from three hundred to three hundred and fifteen men in the House of Commons who, though dissatisfied and disappointed, are nevertheless determined to swallow everything and support them through thick and thin, and they have to encounter an opposition, the scattered fractions of which are scarcely more numerous, but which is in a state of the greatest confusion and disunion, and without any prospect of concord amongst them. The Duke of Bedford came to me yesterday, and told me he had never been so disheartened about politics in his life, or so hopeless of any good result for his party, in which he saw nothing but disagreement and all sorts of pretensions and jealousies incompatible with any common cause, and Aberdeen, whom I met at dinner yesterday, is of much the same opinion. The principal object of interest and curiosity seems now to be whether Palmerston will join them or not. On this the most opposite opinions and reports prevail. Just now it is said that he has resolved not. At all events, if he does, he will have to go alone, for he can take nobody with him, as it certainly is his object to do. But it does not appear now as if there was the least chance of Gladstone or Sidney Herbert joining him. The Duke of Bedford told me that both Derby and Palmerston were in better odour at Windsor than they were, and that the Queen and Prince approve of Pam's move about the Resolutions, and think he did good service. Aberdeen also thinks that though the Whigs and Radicals are angry with Lord Palmerston, and that his proceeding was unwarrantable, he stands in a better position in the country, and has gained credit and influence by what he did. Abroad, where nobody understands our affairs, he is supposed to have played a very great part, and to have given indubitable proof of great political power. _December 9th._--Within these few days the Budget, which was not ill received at first, has excited a strong opposition, and to-morrow there is to be a pitched battle and grand trial of strength between the Government and Opposition upon it, and there is much difference of opinion as to the result. The Government have put forth that they mean to resign if beaten upon it. Derby and Disraeli were both remarkably well received at the Lord Mayor's dinner the night before last, and this is an additional proof that, in spite of all their disreputable conduct, they are not unpopular, and I believe, if the country were polled, they would as soon have these people for Ministers as any others. Nobody knows what part Palmerston is going to take. DEFEAT ON THE BUDGET.