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Has been occupied with election business. Canning's explanation in the case of Mr Harris the chaplain is quite satisfactory. Stanley has asked the Chancellor to reward the other three chaplains in England if possible. Stanley agrees with Canning's principles for compensation claims, that general taxation is better than special local rating, and that no distinction should be made between loyal natives and Europeans. Does not know whether claims should be pa id in full, and awaits Canning's views. Has shown Canning's letter on compensation to the Finance Committee of Council. The army question is to be discussed at a meeting of Cabinet members after the elections. War has begun, the Navy is being increased and it will be easier to dispose of the troops from India. The public wishes Sir John Lawrence to be made a peer, but he would be lost to the Council and there are other difficulties. He has been made a member of the Privy Council. Nothing is yet settled about the vacant seat at Calcutta on the Council. Private.