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Discusses Budge's future, and reports that he has seen the latter, and has been in conversation with Dr Stainer on the subject. Believes that, although Budge could derive great advantage from his remaining on at Cambridge, he is not in a condition 'to make the best of the opportunity', and he is 'inclined to acquiesce in his view that he should obtain employment and independence as soon as possible. Discusses and discounts his possible return to a business world, or his working as a private secretary. Refers to Budge's own desire to obtain an Inspectorship of Schools. Asks Sidgwick to recommend him in this sphere.

Reports that he has written to Budge that day advising him to stay on at Cambridge as Sidgwick suggested. Claims that he did not 'in the first instance propose an Inspectorship of Schools as the best employment for him.' His own view was that Budge would be competent to undertake a student interpretership in the East, but Mr Gladstone did not seem to be in agreement. Dr S[tainer] suggested the Inspectorship, 'which Budge himself very much desired'. It has become clear, however, that he has no chance of obtaining an appointment, and 'it would be unwise to leave Cambridge until he finds some employment in which his peculiar attainments will be of value.' Hopes that he may be induced to continue on with his studies.