asked the Chancellor of the Exchequer whether trustees in Scotland who carry out the conversion of War Bonds at par without making any provision as to the premiums which are payable when the bonds mature will be exempt from all liability from claims on the part of beneficiaries for loss resulting from the premiums not having been secured; and what course trustees should follow?

I am advised that although National War Bonds are eventually repayable at a premium, trustees who hold them would not incur any liability by disposing of them at a price below the redemption figure, but not lower than the market price at the time of disposal. The tender of War Bonds for the new Loan at par is equivalent to a sale at par which is the current market price. It follows from this that trustees will incur no liability in subscribing for the Funding Loan in National War Bonds, provided, of course, that they comply with any specific stipulations contained in the terms of their trust, such as an obligation to obtain the concurrence of a beneficiary.

Lieut.-Colonel A. MURRAY:

Can the hon. Gentleman say what is the date of redemption of the Loan?

I am afraid I cannot remember, but I think about sixty years; it is in the prospectus.

Lieut.-Colonel MURRAY:

I think not.