THATthe Secretary of War be, and hereby is, directed to pay interest upon the advances made by the State of Alabama, for the use of the United States government, in the suppression of the creek Indian hostilities of eighteen hundred and thirty-six and eighteen hundred and thirty-seven, at the rate of six per centum per annum from the time of the advance until the principal sum was paid by the United States to the State; and the sum so found due to said State be paid out of any money in the Treasury not otherwise appropriated.

Sec. 2. And be it further enacted, That the proper accounting officers of the Treasury Department be, and they are hereby authorized and directed to liquidate and settle the claims of the several States, whose claims have not been heretofore fully liquidated and settled according to the principles of this act, against the United States, for interest upon loans or money borrowed, and actually expended, by them respectively, for the use and benefit of the United States,

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during the last war with Great Britain; as also interest upon money, by said States respectively, drawn from a fund upon which they were then receiving interest, and which was by them so expended as aforesaid, and upon money so borrowed and expended as aforesaid, which debt was discharged by said State by the transfer of a fund upon which the State was receiving interest.

Sec. 3. And be it further enacted, That, in ascertaining the amount of interest as aforesaid due to the said States respectively, the following rules shall govern, to wit:

First. That interest shall not be computed on any sum expended, which is not evidenced by the amount which has been, or shall be, refunded or repaid by the United States.

Second. No interest shall be paid on any sum for which the States did not either pay or lose interest as aforesaid.

Third. The rule prescribed by the Supreme Court of the United States, at its January term, eighteen hundred and thirty nine, (12 Peters, 371,) shall be the rule for adjusting these accounts, viz: Interest shall be calculated up to

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the time when a payment has been, or shall be, made. To this interest the payment shall first be applied, and, if it exceed the interest due, the residue shall be applied to diminish the principal. If the payment fall short of the interest, the balance of interest shall not be added to the principal so as to produce interest.

Sec. 4. And be it further enacted, That the amount of interest, when ascertained as aforesaid, shall be paid out of any moneys in the Treasury not otherwise appropriated.

Section 2^_nd And be it further enacted that in ascertaining the amount of interest as aforesaid due to the State of Alabama the following rules Shall govern

That interest shall not be Computed on any Sum which Alabama has not expended for the use and benefit of the United States as evidenced by the amount refunded or repaid to the State of Alabama by the United States—

Second That no interest shall be paid on any Sum on which the Said State of Alabama did not either pay or lose interest as aforesaid—