_London, November 24th._--After his failure with Stanley, Palmerston applied to Sidney Herbert, who went to Broadlands, but, finding that he and Palmerston could not agree upon the subject of war and peace (the details of their disagreement I do not know), he declined the offer of the Colonial Office. Palmerston then sent for Labouchere, who accepted.[1] He called on me the day after and told me he had been to Broadlands, that Palmerston had told him everything about the state of affairs and his own views and opinions, and, as he could find nothing therein to object to, he had accepted the office. As Labouchere is certainly moderate, this would indicate more moderation on the part of Palmerston than Sidney Herbert found in him, unless Labouchere and Sidney Herbert take totally dissimilar views of affairs. After this, a few days ago, I had a long conversation with George Lewis, who told me that France and Austria were endeavouring to bring about peace, and that communications were going on between France and our Government on the subject, and he said, moreover, that Palmerston was by no means so stiff and so bent on continuing the war as was generally supposed. This intelligence appeared to me to explain what I could not understand in his communications with Sidney Herbert and Labouchere; for, if the Emperor has really intimated to our Government his determination to try and make peace, Palmerston must needs come down from his very high horse and evince a disposition to go along with our Imperial ally, who has got the whole game in his own hands, and whom we must perforce follow when he is determined to take his own course. Then our warlike propensities may be probably restrained by the alarming prospect of financial difficulties which Lewis sees looming in the distance. He said to me, 'I am sure I do not know how I shall provide ways and means next year, for the enormously high prices will be a great blow to consumption, and the money market is in a very ticklish state.' I said, 'You will have to trust to a great loan, and ten per cent. income tax;' to which he assented. They have now patched up the Government, by getting Baines to take the Duchy of Lancaster with a seat in the Cabinet--a very respectable man, who cannot speak, and who will be of no use to them. Neither he nor Labouchere will add much to their strength, but they are both very unexceptionable appointments. I think that, in spite of the undiminished violence of the press, the prevailing opinion is that there is the beginning of a change in the public mind, and an incipient desire for peace; and I agree with Disraeli, who thinks that, when once the current has fairly turned, it will run with great rapidity the other way. [Footnote 1: The Right Hon. Henry Labouchere, born in 1798, a highly respected member of the Whig party, who filled many offices in Liberal Governments. He was created Baron Taunton on his retirement from office in 1859, and died in July 1869.]