§ 54. Mr. Higgsasked the Chancellor of the Exchequer whether he will consider accepting the new 2½ per cent. bonds for Death Duties at par value in order to encourage investors to take them up instead of keeping some part of their estates in the bank or some other liquid position for providing for Death Duties?
§ Sir K. WoodAs I have stated in replies to previous Questions, it would not be in the national interest to allow holders of 2½ per cent. National War Bonds the right to tender them at par in payment of Death Duties. Such a right would be of value to subscribers only if the market price of the bonds at the time they are tendered were below the issue price, and would, therefore, constitute a one-sided arrangement at the expense of the Exchequer. To the extent it was exercised it would, in fact, represent a concealed addition to the cost of borrowing. Moreover, the right would operate in favour of certain subscribers only, and not of the whole class.
§ Mr. HiggsIs the Chancellor aware that Victory Bonds issued during the last war were accepted at par value? Will he not give further consideration to this point?
§ Sir K. WoodIf my hon. Friend will study my reply, he will see that there are substantial grounds for the course I have indicated.
§ Mr. StokesWould it not save a lot of trouble if the Chancellor took over all property on death?