LORD PALMERSTON ACCEPTS OFFICE.

Hatchford, Friday, 24th.—The great event of yesterday was Palmerston's accession to the Government. Lord Lansdowne had called on him the day before, and had, I suspect, little difficulty in persuading him to change his determination and join the new Cabinet. He said he would place himself in Lord Lansdowne's hands, and yesterday morning I heard as a secret, though it was speedily published, that he had agreed to take the Home Office. The next thing was Lord John's consent to take the Foreign Office. This he was persuaded to do by Clarendon, who engaged to help him in the work, and relieve him by taking it himself the moment Lord John should find himself unequal to it, and on these conditions he consented. It was settled that Gladstone should be Chancellor of the Exchequer, but Delane went to Aberdeen last night for the purpose of getting him to change this arrangement on the ground of the difficulty there would be about the Income Tax.

The important part of forming the Cabinet is now done, and nothing remains but the allotment of the places. It will be wonderfully strong in point of ability, and in this respect exhibit a marked contrast with the last; but its very excellence in this respect may prove a source of weakness, and eventually of disunion. The late Cabinet had two paramount chiefs, and all the rest nonentities, and the nominal head was also a real and predominant head. In the present Cabinet are five or six first-rate men of equal or nearly equal pretensions, none of them likely to acknowledge the superiority or defer to the opinions of any other, and every one of these five or six considering himself abler and more important than their Premier. They are all at present on very good terms and perfectly satisfied with each other; but this satisfaction does not extend beyond the Cabinet itself; murmurings and grumblings are already very loud. The Whigs have never looked with much benignity on this coalition, and they are now furious at the unequal and, as they think, unfair distribution of places. These complaints are not without reason, nor will it make matters better that John Russell has had no communication with his old friends and adherents, nor made any struggle, as it is believed, to provide for them, although his adhesion is so indispensable that he might have made any terms and conditions he chose. Then the Radicals, to judge from their press, are exceedingly sulky and suspicious, and more likely to oppose than to support the new Government. The Irish also seem disposed to assume a menacing and half hostile attitude, and, having contributed to overthrow the last Government, are very likely (according to the policy chalked out for them after the election) to take an early opportunity of aiding the Derbyites to turn out this. Thus hampered with difficulties and beset with dangers, it is impossible to feel easy about their prospects. If, however, they set to work vigorously to frame good measures and remove practical and crying evils, they may excite a feeling in their favour in the country, and may attract support enough from different quarters in the House of Commons to go on, but I much fear that it will at best be a perturbed and doubtful existence. Such seems the necessary condition of every Government nowadays, and unfortunately there is a considerable party which rejoices in such a state of things, and only desires to aggravate the mischief, because they think its continuance and the instability of every Government will be most conducive to the ends and objects which they aim at.

London, December 28th.—The remonstrances against Gladstone's being Chancellor of the Exchequer were unavailing, but he says he is not tied up by anything he said about the Income Tax. This will nevertheless be a great difficulty, for Graham and Wood, though not perhaps so much committed as Gladstone, are both against the alteration, which the public voice undoubtedly demands. Last night the new Ministers took their places on the Treasury bench, and the Tories moved over to the opposite side. Aberdeen made his statement, which was fair enough and not ill received, but it was ill delivered, and he omitted to say all he might and ought to have said about Lord Lansdowne, nor did he say enough about John Russell. He said, on the other hand, more than enough about foreign policy, and gave Derby a good opportunity of attacking that part of his speech. Derby was more moderate and temperate than on the first night, and made a pretty good speech. He was wrong in dilating so much on what had passed in the House of Commons, and he made very little of the case of combination; he was severe on Graham and his speech at his election at Carlisle, and Graham heard it all. Nobody else said a word.

IRRITATION OF THE WHIGS.

The Government is now complete, except some of the minor appointments and the Household. It has not been a smooth and easy business by any means, and there is anything but contentment, cordiality, and zeal in the confederated party. The Whigs are excessively dissatisfied with the share of places allotted to them, and complain that every Peelite without exception has been provided for, while half the Whigs are excluded. Though they exaggerate the case, there is a good deal of justice in their complaints, and they have a right to murmur against Aberdeen for not doing more for them, and John Russell for not insisting on a larger share of patronage for his friends.[1] Clarendon told me last night that the Peelites have behaved very ill, and have grasped at everything, and he mentioned some very flagrant cases, in which, after the distribution had been settled between Aberdeen and John Russell, Newcastle and Sidney Herbert, for they appear to have been the most active in the matter, persuaded Aberdeen to alter it and bestow or offer offices intended for Whigs to Peelites and in some instances to Derbyites who had been Peelites. Clarendon has been all along very anxious to get Brougham into the Cabinet as President of the Council, and he proposed it both to Lord John and Aberdeen, and the latter acquiesced, and Clarendon thought it was going to be arranged that Granville should be President of the Board of Trade, and Brougham President of Council; but Newcastle and Sidney Herbert not only upset this plan, but proposed that Ellenborough should be President of Council, and then, when he was objected to, Harrowby. They also wanted that Jersey should remain Master of the Horse, Jonathan Peel go again to the Ordnance, and Chandos continue a Lord of the Treasury. With what object they wished for these appointments I have not an idea, but the very notion of them is an insult to the Whigs, and will be resented accordingly.

Lord Lansdowne seems to have taken little or no part in all this. He hooked Palmerston, and, having rendered this great service, he probably thought he had done enough. The Whigs at Brooks's are very angry, and Bessborough told me that he thought his party so ill used, that he had implored Lord John to withdraw even now rather than be a party to such injustice. Lord John seems to have been very supine, and while the Peelites were all activity, and intent on getting all they could, he let matters take their course, and abstained from exercising the influence in behalf of his own followers which his position and the indispensability of his co-operation enabled him to do. This puts them out of humour with him as much as with Aberdeen and his friends.

We had a great reunion here (at Lord Granville's) last night, with half the Cabinet at dinner or in the evening. I told Graham what the feelings of the Whigs were. He said they had a very large and important share, the Chancellors of England and of Ireland, etc., and he defended some of the appointments and consequent exclusions on special grounds. They have made Monsell, an Irish Catholic convert, Clerk of the Ordnance, together with some other Irish Catholic appointments, and he said that these were necessary in order to reconquer in Ireland what had been lost by the Ecclesiastical Titles Bill, and that it was of more consequence to conciliate that large part of the Empire than to provide for the Ansons and the Pagets; and on the same ground he justified the appointment of St. Germans instead of Lord Carlisle as Lord Lieutenant. All this may be very true, but the Whigs to be left out to make room for these substitutes will not be convinced or pacified by the political expediency which Graham sets forth, nor will such appointments be at all popular here. If, however, they really should be the means of rallying the Irish Brigade to the support of the Government, it may be patronage well bestowed. But this makes it a disagreeable start, and may be hereafter productive of serious consequences. Nothing can be more shortsighted, as well as unfair, than the conduct of the Peelites in trying to thrust their own people instead of Whigs into the offices, for they can only hope to keep their places at all by the zealous support of the whole Whig force, themselves bringing next to nothing in point of numbers, and to encounter such a numerous and compact Opposition will require the zealous co-operation of all who wish well to the Liberal cause, and who are against Derby. Newcastle talked to me last night about Aberdeen's speech, acknowledged its deficiencies, and said he had told Aberdeen what he thought of it. Aberdeen acknowledged it all, said he was so unaccustomed to make such statements, that he had forgotten or overlooked it, and wished he could have spoken it again to repair the omission. They all seem at present very harmonious in their intercourse.

THE CLAIMS OF THE PEELITES.

After dinner last night John Russell and Charles Wood went off to meet Aberdeen, for the purpose, I believe, of settling some of the arrangements not yet fixed. Clarendon told me that Charles Wood had been of use in stimulating John Russell to interfere and prevent some of the proposed changes which the Peelites wished Aberdeen to make in the list as originally settled between him and Lord John, and it is very well that he did. It is impossible not to see that Lord John himself, though now willing to co-operate and do his best, has never been hearty in the cause, nor entirely satisfied with his own position; and this has probably made him more lukewarm, and deterred him from taking a more active and decided part in the formation of the Government. We are just going down to Windsor, the old Government to give up seals, wands, etc., the new to be sworn in. They go by different railways, that they may not meet. It is singular that I have never attended a Council during the nine months Lord Derby was in office, not once; consequently there are several of his Cabinet whom I do not know by sight—Pakington, Walpole, and Henley. With my friends I resume my functions.