3rd.—They are now keeping up a pretty brisk fire between San Agustin and the citadel. This morning the streets were covered with coaches, filled with families leaving the city.

4th.—Things are becoming more complicated. The rebels now occupy San José, Salto de Agua, the college of Vizcaynas (from which all the poor girls and their teachers have fled), Regina, San Juan de la Penitencia, San Diego, and San Fernando—a long line of important points. The president's line begins at San Francisco, continuing by La Concepción; but, without a map of the city, you will not understand the position of the two parties. However, every turret and belfry is covered with soldiers, and the streets are blocked up with troops and trenches. From behind these turrets and trenches they fire at each other, scarcely a soldier falling, but numbers of peaceful citizens; shells and bombs falling through the roofs of the houses, and all this for "the public good."

The war of July had at least a shadow of pretext; it was a war of party, and those who wished to re-establish federalism may have acted with good faith. Now there is neither principle, nor pretext, nor plan, nor the shadow of reason or legality. Disloyalty, hypocrisy, and the most sordid calculation, are all the motives that can be discovered; and those who then affected an ardent desire for the welfare of their country have now thrown aside their masks, and appear in their true colours; and the great mass of the people, who, thus passive and oppressed, allow their quiet homes to be invaded, are kept in awe neither by the force of arms, nor by the depth of the views of the conspirators, but by a handful of soldiers, who are themselves scarcely aware of their own wishes or intentions, but that they desire power and distinction at any price.

It is said that the federalists are very much elated, hoping for the eventual triumph of their party, particularly in consequence of a proclamation by Valencia, which appeared two days ago, and is called "the plan of the Comicios," said to be written by General Tomel, who has gone over to the citadel, and who, having a great deal of classical learning, talks in it of the Roman Committees (the Comicios). Since then the revolution has taken the name of liberal, and is supported by men of name, the Pedrazas, Belderas, Riva Palacio, and others, which is of great importance to Valencia, and has given force and consistency to his party. Besides this, the pronunciados have the advantage of a free field from the citadel out to Tacubaya, where it is said that certain rich bankers, who are on their side, are constantly supplying the citadel with cartloads of copper, which they send in from thence….

Meanwhile, we pass our time very quietly. In the morning we generally have visitors very early, discussing the probabilities, and giving us the last reports. Sometimes we venture out when there is no firing, which is much less constant and alarming than it was last year. So far we continue to have visitors in the evening, and Señor B—— and I have been playing duets on the harp and piano, even though Mexico is declared "in a state of siege." The ——- Minister, who was here this morning, does, however, strongly recommend us to change our quarters, and to remove to Tacubaya; which will be so troublesome, that we are inclined to delay it until it becomes absolutely necessary….

5th.—We went upon the azotea this afternoon, to have a good view of the city. There were people on almost all the balconies, as on a fête-day. A picturesque group of friars of the order of La Merced, in their white robes, had mounted up on the belfry of their church, and were looking out anxiously. The palace roof next our own had soldiers on it. Everything at that moment was still and tranquil; but the conduct of the people is our constant source of surprise. Left entirely uncurbed, no one to direct them, thousands out of employment, many without bread, they meddle with nothing, do not complain, and scarcely seem to feel any interest in the result. How easily might such a people be directed for their good! It is said that all their apathetic sympathies are in favour of Bustamante.

Some say that Santa Anna will arrive to-day—some that the whole affair will be settled by treaty; but neither reports nor bulletins can be depended on, as scarcely any one speaks according to his true feelings or belief, but according to his political party….

It appears that the conduct of congress in this emergency has given little satisfaction. They affect to give a declaration of the national will, and are as ambiguous as the Delphic Oracle; and it is said that their half- measures, and determination not to see that public opinion is against them, and that a thorough change can alone undermine this military revolution, will contribute more than anything to its eventual triumph….

The president has made use of the extraordinary powers which have been granted him by the Poder Conservador (conservative power, a singular and intermediate authority introduced into the Mexican constitution), to abolish the ten per cent, on consumption, and to modify the personal contribution, reducing it to the richer classes alone. This concession has apparently produced no effect. It is said that the government troops continue to desert, convinced that a revolution in which Santa Anna takes part must triumph. Four new generals have been made by the president….

6th.—We went out to Tacubaya, and found it impossible to procure a room there, far less a house. This is also the case at Guadalupe, San Joaquin, in fact in every village near Mexico. We are in no particular danger, unless they were to bombard the palace. There was a slight shock of an earthquake yesterday.