21 DECEMBER 1861, Page 3

Sidifs,—It is stated positively that Sir Charles Wood is about

to transfer the seat of government from Calcutta to the Hills. Such a measure would be most mischievous, first, because Calcutta contains the only population whose observation can keep government from becoming a pure autocracy, and secondly, because the base of the English power in India is the sea, and the Government, on the oc- currence of any insurrection, would be isolated and powerless. The design has been entertained a great many times, and always aban- doned.

The revenue returns are most satisfactory, showing a reduction of four millions sterling on the expenditure for the first six months of the financial year 1861-62.