New York, Nov. 28. The Commercials City Point lottor says of Butlers Caual, at Dutch Gap Uut, that it is in an advanced stage of conatruction. ïho lower half Las been finishcd and dredged out at its entranoe. Tlie greater part of the second section haa been cut down bolow the water line. ïoward the upper end, a bank from fivo to ten feet thick has been left to keep off the current. The canal wil! be 500 feet long, ineluding dredgitig ; 550 feet in bread th at the top, and Í25 feet at the botton), the sides having very steep slopes It will have fifteen feet of water at low tidesi. This short cut will save the navigaton of seven miles.