"CLUMBER, "6 _Jany_. 1863.

"MY DEAR SIR,

"I have received several letters from you without sending any answer; but I must confess I am so disheartened about the result of all the trouble I have taken with the 'delegates,' that I do not know how to proceed, or, rather, I do not see the possibility of proceeding at all.

"At the last interview I had with the Canadian delegates, everything was considered settled to their satisfaction, except the one point of a sinking fund, and even that was admitted by all but Mr. Sicotte to be met by Mr. Gladstone's consent, that the money should be invested in Colonial securities. Thus matters stood until the _day_ the Canadians embarked, when (avoiding an interview with Sir F. Rogers, and everybody else) they sent me in a paper, couched in terms offensive to the British Government, and complaining of every single provision in the conditions--evidently got up to carry out Mr. Sicotte's pre- arranged plan of upsetting the whole scheme, and throwing the blame on the Imperial Government.

"Unless this miserable creature and his colleagues are turned out of office on the first day of the Session, it is manifest that the measure will be _sold_ for party purposes; and in that case I shall be unwilling to play into their hands, by giving them the N. W. Transit Scheme.

"I cannot be in town till after the 19th. I will see you then, if you wish it, or any day next week if, on your way to or from Manchester, it were convenient to you to dine and sleep here. I shall most likely be alone.

"I do not understand your alarm about a clause in the Treasury Minute.

I know of no provision which impedes legislation this Session, except that requiring a previous survey, which I more than once discussed with you, and which I thought you agreed could easily be met.

"When you are in London Sir F. Rogers can show you Messrs. Sicotte and Rowland's extraordinary paper, if you wish to see it.

"I am, my dear Sir, "Yours sincerely, "NEWCASTLE."

Sir Frederick Rogers showed me the "extraordinary paper" of Messrs.

Sicotte and Howland, and yet Mr. Howland, on his return, favoured me with the following letter:--

"QUEBEC, "3_rd April_, 1863.

"MY DEAR SIR,

"The pressure of public business has prevented me from sending an earlier reply to your valued favour of the 26th February. In reference to the tariff of charges of your Company, you must be aware that it is not legal, unless approved by the Governor and Council. I am not aware of the circ.u.mstances stated by you, but presume, that if the Provincial Secretary called for your tariff, it was because it had not received the sanction of the Government; however, I feel safe in saying, that in the exercise of that power the Government would not be actuated by any feeling other than that of performing a public duty.

"Mr. Sicotte and myself were treated with the greatest consideration and kindness by His Grace the Duke of Newcastle, and I deeply regret that the action which we felt it necessary to take, in the performance of a public duty, should have produced any unpleasant feeling on the part of his Grace: however important the Intercolonial railroad may be, the opening up of the N. W. Territory would increase its value, and, in fact, afford much stronger grounds for its construction than exists at present, and the immediate result of opening up that territory would, in my opinion, be productive of much greater good to the people of England and Canada than would result from the construction of the Intercolonial railroad.

"I send by post the report of Mr. Taylor to the United States Government, upon the N. W. Territory of B.A., by which you will perceive, that they attach much greater importance to the future of that country than the people of England or Canada have hitherto shown.

The description given of the climate appears to have been compiled from reliable data, and affords the clearest information upon that point that has as yet come before the public: I regret not having another copy to send His Grace the Duke of Newcastle; if he has not received one, will you be kind enough to send him this.

"Mr. Sandford Fleming (who is an engineer of high character and ability) is now here, as a delegate from the people of Red River, in charge of a memorial on their behalf to the Governments of Canada and England: this memorial is accompanied with a very clear statement of the condition and prospects of the country, and a report upon the proposed communication to be made through it. I am now getting the doc.u.ments printed, and when done I will send you a copy, and one will be forwarded by His Excellency to the Duke.

"Mr. Fleming and myself are preparing some suggestions for you, in reference to the purchase of the rights of the Hudson's Bay Company, with a view to show in what manner it could be carried out, and afford security that the country should be opened for settlement, and at the same time afford an inducement to the parties who might become the purchasers. It would truly be a great project, and if the Company would come down in their pretensions to what their possessory rights are really worth, it could be carried out, and result in great good to the country, and offer great inducement to those who might engage in it.

"I am much pressed with work, and somewhat better in health.

"Yours faithfully, "WM. P. HOWLAND.

"EDW. WATKIN, Esq., "21, Old Broad Street, London."

And if further proof were wanting that these gentlemen deserved the previously-quoted strictures of the Duke, always bearing in mind the trouble, responsibility and expense incurred, mainly at their instance, upon the Pacific project, the following gives it:--

"No. 1107. SECRETARY'S OFFICE, QUEBEC, "1_st Augt_. 1863.

"SIR,

"I have the honour to inform you that your letter of the 27th ultimo, addressed to the Hon. John S. Macdonald, has been transferred to this Department.

"I am now directed to state, in reply to the inquiry therein made, that the details of the scheme for the promotion of telegraphic and postal communication across the Continent of British North America have not, as yet, been placed before the Provincial Government in such a definite shape as to enable them to determine the course which it may be advisable to take in relation to that important undertaking.

"The Government will, however, be prepared, whenever a sufficiently matured scheme shall be submitted for their consideration, to give the subject their most earnest attention.

"I have the honour to be, Sir, "Your most obedient Servant, "E. A. MEREDITH, "_a.s.sistant Secretary_."

"EDWD. W. WATKIN, Esq., "_Montreal_"

Two days after the Duke's last letter, came the following:--

"KELHAM, NEWARK, "8 _Jany_. 1863.

"MY DEAR MR. WATKIN,

"Since your letter of the 6th (received to-day), you will partly have learnt why I could not answer some of your private letters, but as regards the official letter respecting the Western project, I think you will see that I cannot answer it without consulting my colleagues.

_I_ cannot _grant_ a subsidy, and on the other hand I should be unwilling to _refuse_ it. The proposal that part of the subsidy should be Imperial necessarily entails delay. I do not think I can possibly send an answer till after the next Cabinet.

"I shall be sorry to miss Mr. J. A. Macdonald. The only chance of seeing him would be if he could dine and sleep a night at Clumber on his way to Liverpool. Unfortunately I must be all day on the 16th at Newark on County business. Could he come on the afternoon, of 15th without inconvenience?

"I am, yours very sincerely, "NEWCASTLE."

And farther letters in the order given.

"CLUMBER, "15 _Jany_. 1863.

"MY DEAR MR. WATKIN,

"I have written officially to the Admiralty respecting the formation of a Naval Station at Esquimault, but I will now write privately to the Duke of Somerset and ask for an early answer.

"Mr. Macdonald came last night, and I was delighted to see him a new and healthy man. I had an interesting conversation with him, but fully expecting he would stay till to-morrow reserved several things for to- day. It was not till breakfast was over that I knew he was returning in five minutes. As, however, his return to Canada is postponed for a week, I shall see him in London.

"I am, yours very sincerely, "NEWCASTLE."

"CLUMBER, "26 _Jan_.

"Your letter received just as I am starting for London. I remain there, and can see Mr. Cameron in town any day. I was in London last week, and saw Mr. Macdonald. Mr. Cameron was Mr. Malcolm Cameron, a man whose worth was undoubted.

"Yours, &c., "N."