"I have the honour to be, dear Sir,
"Yours very faithfully and obliged,
"E. W. WATKIN.
"THE RT. HON. THE CHANCELLOR OF THE EXCHEQUER."
"DOWNING STREET, S.W. "August 8, 1867.
"DEAR SIR,
"I have had the honor of receiving your letter of the 3rd instant, in which you refer to the rumoured intention of Her Majesty's Government to recommend your name to the Queen for the honor of knighthood, in consideration of services connected with the International Colonial Railway, and the influence of that undertaking on the union of the British North American Provinces; and in which you state your apprehension, that such an intention, in consequence of the recent intelligence from Canada with respect to the distribution of honors, might prove embarrassing to the Government.
"Under that impression you have, in a manner highly creditable to yourself, and most considerate to the Government, stated that you should not feel yourself slighted or aggrieved, if the views of Her Majesty's Government towards yourself were not proceeded with pending such an unfortunate feeling in Canada.
"It is quite true that it was the intention of Her Majesty's Government to recommend to Her Majesty to confer the honor of knighthood on you, in consideration of your services in question, thereby, as they believe, fulfilling the purpose of the late Duke of Newcastle, when his Grace was Secretary of State for the Colonies; but Her Majesty's Government, appreciating your motives in the suggestion which you have made, are of opinion that it may be expedient to suspend, for a time, conferring a distinction on you which, under the peculiar circumstances of the case, might occasion a painful, though an unfounded, feeling of jealousy.
"I have the honor to remain,
"Dear Sir, yours faithfully,
"B. DISRAELI.
"E. W. WATKIN, Esq., M.P."
Time went on, and, one morning in the summer of 1868, I received this letter:—
"10, DOWNING STREET, WHITEHALL, "August 11, 1868.