James does not indicate the place of writing but the reference to possibly overtaking him in Venice suggests he may be writing from Italy. He was in Italy from December 1886 through mid-July 1887.
Part of a collection of letters from Henry James to Dr. William W. Baldwin between 1887 and 1900 (MA 8732.1-75). This collection is part of a much larger collection of letters to Dr. Baldwin from authors, English royalty and other luminaries of the period, including Samuel Clemens, William Dean Howells, Sarah Orne Jewett, Henry Cabot Lodge, Booth Tarkington, Edith Wharton and Constance Fenimore Woolson. See MA 3564 for more information on the complete Baldwin collection.
The year is writing is from an inventory of Henry James letters created by Leon Edel. There is no month or date given. Edel's inventory suggests the year of writing may be 1887.
Two of the pages are numbered as pages 5 and 6. The final page, which would be page 7, is not numbered.
Appearing to be apologizing for missing a chance to see him; saying "...sorry not to shake hands with you but you know that you have my very good wishes. I think I especially (after an easier life - or rather an undiminished ability to resist a hard one) wish you the possession of the Villa Castellani. I shall be, greatly elated if I hear of that purchase. Perhaps you will be able to overtake me in Venice - but in any case take care to enjoy your holiday & make it a real one. May I find you in Florence long - because I hope in future to come often."