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There is better news from Mhow, the post has been regularly received, and the telegraph has just been reopened. Evidently Holkar was not implicated. His troops were probably urged on by the Bengal sepoys at Mhow. The two bodies of men marched off towards Delhi, but quarrelled over booty, and so the Indore men returned to Indore and asked the Maharajah for guns to pursue the Bengal sepoys and recover the treasure. Captain Hungerford seems to have advised Holkar to comply, but Holkar sent other troops whom he could trust in pursuit, with two guns. There is not much chance of recovering the 9 or 10 lacs that were plundered. Colonel Durand has been heard of at Sehore, he means to go to Hoosingabad and join the Field Force. He seems to think Holkar has turned against the British, though this is not the case. Describes Holkar's actions. General Woodburn has been forced by ill-health to resign the command of the Field Force, and it has devolved upon Colonel Stuart. He is making for Mhow, though Mr Plowden urged him to go to Nagpore. There is a large force of Madras troops, with European Artillery, at Kamptee. Sends a letter from Sir John Lawrence. The financial question is hardly less difficult than the military one; the 5% Loan is down at 97, and no more will come from it, unless some bonus is given to the holders of 4% paper which would induce them to invest in the 5% Loan. The holders of 4% paper have never forgiven the Government for the financial operations of 1855. Some of the Banks and houses of Agency in Bombay who used always to invest large sums in Government paper now refuse to hold any. Colonel Jameson, Military Auditor General in Bombay, thinks that a remittance of bullion from England would be the surest way to restore confidence. Asks for answers to 3 questions submitted by Sir Richmond Shakespear. These are 1. May he proclaim Scindia's districts in Gugerat confiscated? 2. May he offer the Gaekwar hopes of obtaining a part of the districts if he is faithful? 3. May he tell the Gaekwar that his contribution of 3 lacs a year for the Gugerat Horse will be remitted, if he is faithful? Lord Elphinstone thinks these questions are premature, it is not proved that Scindia is implicated. The Gaekwar will be told in general terms that it will be to his advantage to prove his fidelity to the Government.

Enclosed: Copy of a letter from Sir John Lawrence to Lord Elphinstone, Rawal Pindee, 27 Jun stating that no more news of importance has been received from Delhi. The disorganization of the North West seems general and complete. The country is over-run by robbers and plunderers; the land is not cultivated, the crops are not sown, no revenue is collected, and none will probably be forthcoming in the next year. Large supplies will be needed, and must come from England. Lawrence would like to be sent news of anything important happening in Bengal, and when troops may be expected from England. There seems to be a great shortage of material for Enfield Rifle ammunition and even of the proper bullet moulds with the Army at Delhi, asks for this to be remedied. Note by Elphinstone, there are only five patent bullet moulds in Bombay, two of them will be sent to Delhi via Sind and the Punjab.