Flahault has been instructed to propose to us in conjunction with Russia to ask North and South to suspend their war for six months. I have not seen the despatch.

We shall consider our answer on Tuesday next.

The Emperor's proposal was declined by the British Government, and at first peremptorily declined also by the Russian Government, but as soon as the latter perceived, by a speech made by Lord Palmerston at the Guildhall, that there was no chance of an acceptance of the proposal by England a circular was issued, stating that if France persisted in her intention, the Russian Minister at Washington would be instructed to give it moral if not official support. Thus, as on many other occasions, did Louis Napoleon's elaborate scheme vanish into space.

One fresh difficulty which had arisen in the meantime was the diminished influence of Mr. Seward with the President and his ministers. He had become much more conciliatory in his dealings with foreign representatives, but was apparently unable to carry his points with other departments, and had fallen in public estimation by signing the Abolition Proclamation which had been imposed upon him, in opposition to all his views by the Radical party in the Cabinet. Towards the end of the year it seemed quite probable that he would have to resign, and the contingency was viewed with consternation, for although Mr. Seward had very pronounced faults, he now represented the Moderate party, and his departure would signify the surrender of President Lincoln to the Ultra Radical party, prepared to risk everything, even to a foreign war, in order to maintain itself in power.

Upon the whole, there was every excuse for dissatisfaction with their Government on the part of the Northern public. After about two years' fighting the two main armies of the North and South remained in much the same position, but, if anything, the balance of gain appeared to rest with the South. New Orleans, it is true, had been captured, but the invasion of Virginia had failed, and Richmond was as unapproachable as ever. The North were the attacking party, and if they failed to advance it was equivalent to a defeat. Disappointment and discouragement had succeeded to confidence and enthusiasm, and if the contest imposed much severer hardships upon the Confederates than upon their opponents, there was no sign of faltering, and their spirit remained as high as ever.

Before the end of 1862 the prices of ordinary articles in the Confederate States had already greatly increased. As early as October, according to the consular reports, the price of tea at Savannah was sixteen dollars a pound; brown sugar sixty cents; loaf sugar unobtainable, and the commonest brown soap seventy-five cents. At Charleston, coal was unprocurable; black cloth fetched fifty-three dollars a yard; shoes cost thirty-four dollars a pair; beer thirty dollars a dozen; sugar a dollar a pound; butter a dollar and a half, and the pound sterling was worth fourteen dollars. In view of these figures it would be interesting to learn the cost of a banquet given by General Ripley in December 1862, to some French officers at Charleston, at which Consul Bunch, of revoked exequatur fame, was present, and which must surely have been the most sumptuous meal ever partaken of in a besieged town since the days of Belshazzar.


BILL OF FARE.

Oysters on Shell.
Fish.
Salmon, Anchovy sauce.
Soup.
Green Turtle.Oyster.
Relevées.
Fillet of Beef, braisé with Mushrooms,
Capon, with Truffes à la Regence.
Boiled.
Leg of Mutton, Caper sauce,
Turkey, Celery sauce.
Cold.
Boned Turkey, garnished with Jelly,
Chicken Salad, à la Française,
Game Pattie, with truffles, decorated with Jelly.
Entrées.
Sweet Breads, larded en croustade, sauce petits pois,
Fillets of Teal Duck, bigare, sauce Italienne,
Quails, braisés, sauce Champignons,
Snipe, broiled on Toast,
Fillets of Venison, sautés, sauce Poivrade,
Fried Oysters.

Relishes.
Sardines, Olives, Celery, Assorted Pickles,
Horseradish, Pickled Onions, Cranberry Jelly,
Worcestershire sauce.
Vegetables.
Baked Sweet Potatoes, New Irish Potatoes, Mashed Potatoes,
Spinach, Cauliflowers, Turnips, Rice.
Roast.
Turkey, stuffed with truffles, Saddle of Mutton,
Baked Ham, Madeira sauce.
Game.
Wild Duck, Wild Turkey, Venison, with Jelly.
Pastry.
Plum Pudding, Brandy sauce.
Apple and Mince pies, Omelette Soufflée, Lady Fingers,
Vanilla Kisses, Sponge Cake, Cup Custard, Madeira Jelly.
Dessert.
Apples, Nuts, Coffee, etc.