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was that whilst extremely reluctant to interfere in any way in the American contest, interference might be forced upon them. Mediation was again in the air, and M. Mercier and the French Government thought that an opportunity had arrived for proposing it.

      Lord Lyons, after having been detained by Lord Russell for the purpose of additional consultations, set out again for Washington in October accompanied by the late Sir Edward Malet, who remained for a considerable period on his staff, and became one of his closest friends. In fact, with the exception of the late Mr. George Sheffield, who was already acting as his private secretary, and of the late Sir Michael Hubert, who subsequently acted in the same capacity, it is doubtful whether any other person of his acquaintance ever reached the same degree of intimacy or shared his confidence to an equal extent.

      The visit to England had in no sense changed the policy of the British Government towards the United States, and there were no fresh instructions with regard to mediation, intervention, recognition of the South, and the numerous other matters which occupied attention. Nor had any essential change taken place in the situation in America, and Lord Lyons, immediately after his return expressed the opinion that foreign intervention, short of the use of force, would only make matters worse. The indefatigable M. Mercier, however, in whose thoughts intervention was always uppermost, was full of a new plan, although, with the violent party predominant in the Cabinet, the moment did not appear propitious. M. Mercier's idea was that France, with the consent and support of England, should offer mediation alone. He thought that the difficulty which the irritation against England threw in the way of mediation might thus be avoided, while the fact of England supporting France would give to France the weight of both Powers. According to his information, Russia, probably from a desire to separate France and England, was disposed to join France in offering good offices, but, independently of other considerations, the presence of Russia might be an obstacle to the success of his plan. It would take away from the offer of mediation the element of intimidation, which, though kept in the background, must be felt by the United States to exist. The mediation of all the European Powers (France, England, Russia, and perhaps Prussia) would be a different matter. It might have the effect of reconciling the pride of the United States to negotiation with the South, and might, in certain conjunctions, be usefully employed. But it would be more easy for the Government of the United States to reject an offer from the four Powers than from England and France, or from France only. England and France had an obvious and pressing interest in putting an end to hostilities and the means of supporting their counsels by their navies.

      Such was M. Mercier's plan, but he received little encouragement from his British colleague, who had anticipated something of the kind, and with habitual caution declined to pronounce any opinion until he had received instructions from home. As a matter of fact, he had foreseen this proposal when in England, and had obtained an assurance from Lord Russell that it should be discussed by the Cabinet.

      The two following letters from Lord Russell to Lord Lyons show that M. Mercier was really in accordance with his own Government.

      * * * * *

       Woburn Abbey, Nov. 1, 1862.

      The Emperor of the French wishes to offer peace to both parties, and he says both parties will agree to peace, the one on the ground of Union and the other on the ground of Separation! I fear we are no nearer to peace, if so near, as we were a year ago.

      Seward's avowal to Mr. Stuart that he looks to mutual extermination and the superior numbers of the North, in order to restore the Union!!! is the most horrible thing I ever heard.

      Cobden, I fear, is right when he says that to preach peace to them is like speaking to mad dogs. I am much less sanguine than I was, but I shall be glad to hear your views on your return. Russia must be a party to any thing done by us and France—if we do anything.

      * * * * *

       Woburn Abbey, Nov. 8, 1862.

      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,

      

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