_December 7th._--I called on Lord Grey in the morning and dined with Lyndhurst in the evening, and had much talk with both of them about the pending questions, Reform, India, Bank Act. Lord Grey is bringing out a book upon Reform. Lyndhurst is decidedly against any strong and subversive measure about India, and is for improving and not upsetting the present system. Public opinion, led by the Press, has hitherto leant to the dissolution of the Company and the Directorial Government; but as time advances and the extreme difficulty of concocting another system becomes apparent, people begin to dread the idea of destroying an ancient system, without any certainty of a better one replacing it, and I think there is a general feeling of alarm at the notion of the Indian Empire being placed under the direction of such a man as Vernon Smith; more, indeed, than is quite just and called for, as his talents, though of a second-rate calibre, are not so low as is supposed, and he is not the cipher in his office he is thought to be, but is well enough acquainted with all its details, and always able to explain everything to the Cabinet clearly and correctly. But these merits, which are those of a diligent clerk, are far from being sufficient to qualify him for having the direction of an office which circumstances have rendered by far the most important and difficult in the whole Government. Till recently the Board of Control has been looked upon as a very subordinate department, and one of mere routine, which anybody might fill. I remember when John Russell offered it to Graham some years ago, he treated the proposal as an insult. _December 8th._--I went to the House of Lords last night and heard for the first time Ellenborough speak--an admirable style of speaking. It was a good night for Canning. The 'Times' has turned right round and defends him, finding the Government are in earnest in doing so. The account of Lucknow just come by telegram is very alarming, and keeps one in a state of nervous excitement, difficult to describe.