_April 27th._--On Monday we heard that the Austrians had sent their ultimatum to Sardinia, and there was a complete panic in the City. Yesterday we were informed that she had given fourteen days' grace to Sardinia, and everything was up again. But this morning we were undeceived, and found this latter report had no foundation. Meanwhile the clamour against Austria has been senseless and disgraceful; nothing could be more unworthy than Derby's allusion to her in his speech at the Mansion House dinner on Monday. It was a claptrap, and meant to obtain popularity and assist the Ministerial interest at the election. Nothing has ever disgusted me more than to see the readiness with which everybody finds fault with Austria, and the care with which they avoid any notice of France, not, however, that this can or will last. What sort of relations we shall continue to have with France I cannot imagine. We have been treated in a manner which puts an end to the possibility of any amicable feelings between the two countries. We can never trust the Emperor again, and must take measures for our own security as best we may; but unhappily the Indian war has so materially diminished our power and absorbed our resources, and France has so enormously gained upon us in point of naval strength, that we are not in a condition to hold the language and play the part that befit the dignity and the honour of the country. We can revile Austria with impunity, for we know that we are in no danger of an attack from her, but, on the contrary, that she has so much need of our good will that she will endure our taunts and reproaches, and not quarrel with us even in words. It was a prophetic saying of Mackintosh forty years ago at Roehampton that it remained to be proved whether the acquisition of our Indian Empire was in reality a gain to us, and we must hope that the remark will not be illustrated in our days by seeing England herself placed in danger by her exertions to retain or reconquer India, whose value is so problematical and of which nothing is certain but the immense labour and cost of her retention. [Sidenote: WAR IN ITALY.]