It is asserted that the Infante Don Francesco, is still at Madrid with his wife, who is on bad terms with the Queen Regent although she is her sister, and is aiming at the Regency for himself instigated by his consort. It is even hinted that his plans are more ambitious still. Civil war is still general in the north, and the principal actors in the drama being placed as they are, it is impossible to predict what the result of the present state of matters in the South of Europe will be.

London, July 11, 1834.—When the King sent for Lord Melbourne yesterday he spoke to him of his desire that a Coalition Ministry should be formed, and asked him to undertake it. Yesterday morning, however, Lord Melbourne had to write to the King to say that the task was impossible. At the same moment Lord Brougham, who does not conceal his desire to stay in office and direct affairs, has also written to the King to say that nothing would be easier than to reconstruct the administration out of the ruins of its predecessor and to continue to govern on the same system. Two leading Tories have told Madame de Lieven that if they were sent for by the King they would accept office. Their plans were made, they said, and when asked whether they would have the courage to dissolve they said that they would not dissolve because they believed that they could control the existing House bad as it is. They also expressed themselves very favourably on the subject of the French Alliance and especially regarding M. de Talleyrand, whose conservative policy inspires them with so much confidence that they say he is the only French Ambassador who would suit them.

Yesterday we had at dinner some relics of the fallen Ministry. The causes of the catastrophe were freely discussed; it seems to have been due to a series of small treacheries or, as Lady Holland said, to High Treason.

Lord Brougham, whom Lord Durham, perhaps justly, described as a rogue and a madman, appears to be the villain of the piece. He has been secretly corresponding with the Marquess Wellesley, the Lord Lieutenant of Ireland, in order to persuade him to make reports to Lord Grey different from those previously sent and intended to induce him to abandon the Coercion Bill. On the other hand he asked the Lords Justices for an opinion on the state of Ireland and on the measures which should be adopted, but, as it was not what he wanted, it never reached Lord Grey and has every appearance of having been suppressed, Mr. Littelton's indiscretions—Lord Althorp's want of energy, the difficulties of the situation as a whole—all this put together ended Lord Grey's irresolution. He had for some time past been decided not to face next session. He wished to retire after the present one and to choose his successor. I believe that he is sincerely glad to be out of the turmoil, but that he is sorry to have resigned when his position was honey-combed with treason and without knowing into whose hands power would fall. He is very dignified about it, but his wife is full of regret and irritation at the loss of all the chances of establishing her family which came from her husband's being Prime Minister.

Lady Holland is quite prostrate with regret for the comfort in which the Duchy of Lancaster kept her husband. Lord Holland talks of it all with a mixture of geniality, indifference, annoyance and good spirits which is rare, amusing and astonishing.

No one knows, foresees, or even guesses what is to be the result of the crisis.

The King is at Windsor surrounded by an undistinguished crowd of relatives, legitimate and illegitimate, who have neither cleverness nor consistency and who are not even agreed among themselves. It is impossible to gauge what influence they will have one way or the other. The presence of the Queen would have had more effect, but I am glad to think that her absence relieves her of all responsibility. The King foresaw this, and said so several times, and her own consolation on leaving was the thought that she could not be accused of influencing the Royal decisions.

London, July 13, 1834.—It is evident that several people have been duped this week. The most surprised and upset are of course the Conservatives. They and the public with them have always imagined that the King, too weak to dismiss the Ministry, would none the less be delighted to get rid of them and would eagerly seize the first opportunity to recall the Tories to office. Yet hours and days pass without their being sent for.

I dined with them yesterday; they were obviously disappointed, and the Duke of Wellington, next whom I sat at dinner at Lady Jersey's, talked quite frankly to me about it. I quite agreed with his opinion of the inevitable result of the King's conduct. Lord Grey represented the last stage between innovation and revolution, and the King, by letting slip a natural and decent opportunity, will be unable to retrace his steps, and will precipitate himself into the abyss which is destined to engulf the monarchy and the country. The effect which this will have in Europe is incalculable.

Some one who was dining last night in the opposite camp told me that the Whigs were sure that the King had come back to town in order to leave Lord Melbourne free to choose what Ministry he liked as he had refused to construct a coalition. This conjecture is confirmed by the fact that several prominent members of the House of Commons have appointments with Lord Melbourne this morning. It appears that the question is whether the more drastic clauses of the Coercion Bill for Ireland are to be abandoned. Lord Melbourne wishes to retain them, but in that case it would be necessary to do without Lord Althorp who seems to be the only person capable of leading the House of Commons. All doubts will probably be resolved when it comes to the point, and to-morrow we shall have a reconstructed or at least a readjusted Ministry, smoothly plastered to the outward view but bearing in itself the seeds of its destruction. What I have long believed and sometimes said seems to be coming true.