31 AUGUST 1861, Page 1

The most recent estimates of the prospects of cotton-supply are

more favourable than those of last week. Not only does it seem that the stocks on hand are larger than had been supposed, but the impres- sion grows stronger that the North will not be able to blockade effectually the long line of coast, comprehending more than twelve degrees of latitude, and a considerable breadth in longitude. Even if this can be effected, the outlets to the North by northern lines of railway can scarcely be barred. Probably the whole extent of the difficulty is comprehended in the question of price. At the price to which cotton seems likely to rise, it is most probable that a supply quite equal to the demand will be forthcoming from India, or from America itself.