The Birmingham age-herald., 1916-02-16
Teachers Salaries for Janu- ary Require $4OO,OOO of
 State Treasury
$5OO,OOO IN STATE
 WARRANTS PAID
Constitutional Loan Made by Tender son Is Repaid-Prosperity Will Be of Short Duration as Other
 Debts Must Be Incurred
By |. s. BETTY

Montgomery, February 15-(Special) During the past two days the state of Alabama has cancelled outstanding debts to the amount of sl.2OO,OOO It was apportioned as follows:
 Three hundred thousand dollars to take up the constitutional loan made by Governor Henderson.
 Four hundred thousand dollars to take up state warrants held by New York banks.
 Four hundred thousand dollars to pay teachers salaries for the month of January
 The payment of these heavy sums made deep hole in the treasury, ac- cording to Treasurer Lancaster, who fntifnated today that there was not much left in the exchequer However. taxes in large amounts are being re- ceived daily. hence it will not be long, 1t is expected. before the coffers will again be overflowing.
 But even this new prosperity will be of short duration, for practically every dollar the state can collect between now and March 15 is already promised The state is pledged to pay on that date E1,00o,o00 as follows:
 Six hundred thousand dollars to lake up other state warrants held by New York banks.
 Four hundred thousand dollars to take up warrants held by Alabama banks, representing teachers salaries for last October.
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 When the state will have made the payment of $1,oOO,0OO on March 15, it will have cancelled the majority of it's immediate or pressing obligations. At the same time the state will have col lected the greater part of revenues for the present fiscal year. Taxes, of course, will continue to come in up to July l, but in small amounts, hard 1y more than enough to pay the ex- penses of running the state govern ment.
 Hence, there will be little or no funds sn the treasury to take care of the heavy obligations of the state. or to take up debts contracted during the time the old debts were being cancelled The new debts-and they are gradually accumu- lating-will go over. in most part until next year. For there Is always float ing debt. as perennial as the babbling brook. The payment of an old debt creates new one.
 Governor Henderson very probably will seek another loan of $3O0,O00 the limit allowed him under the constitution. In the previous administration the governor was authorized to borrow only s100,0OO annually, but the last legislature pro- xided for the use of the entire amount allotted under the constitution.
 NEW LOAN SMALL
 But this new loan will be but a drop an the bucket. It will constitute a part of the new floating debt, of course, but only a sixth part of it. By next Oc- tober, or November. the state will again be confronted by an accumulation of out standing debts to the amount of 2,O 900 or more. all of which must be paid by revenues received after October l. the beginning of the new fiscal year.
 This is the states floating debt, and it was for the purpose of disposing of this debt at one swoop that the governor advocated the bond issue. However, the bond Issue is now dead, without the re- lnotest possibility of resuscitation by this or any near future administration The Floating debt, however, is live issue, and will continue to enjoy life, 1t appears, for a good many more summers