§ THE EARL OF HARROWBYI have given the noble Marquess private Notice of a Question upon two points connected with the Conversion Bill upon which it is desired that a public authoritative statement should be made. The two points are these—in the first place, is it to be understood, as provided in the Bill, that trustees are to treat the 5s. bonus as income to be paid to the life tenant, or will it be merely optional for them to do so? A distinct provision in the former sense would greatly simplify matters and relieve trustees. Secondly, where a solicitor has to be employed but does not happen to be the "agent" recognized by the Bank as the party entitled to receive the 1s. 6d. commission, is there anything in the Bill to preclude him from making his usual professional charges?
§ THE PRIME MINISTER AND SECRETARY OF STATE FOR FOREIGN AFFAIRS (The Marquess of SALISBURY)Having received private Notice of the Question, I referred it to my right hon. 170 Friend the Chancellor of the Exchequer, who has enabled me to answer it. The Bill authorizes trustees to treat the 5s. bonus as interest; but it was not possible to compel them to do so. Strictly the bonus should have been regarded as capital; but in view of the great inconvenience of compelling trustees to reinvest, especially in the case of the smaller holdings, it was thought right to give them the option of treating the bonus as income, and relieve them from responsibility if they so treated it. With regard to the second Question, solicitors, bankers, and brokers will be recognized as agents by the Bank. There is nothing in the Bill to prevent any man receiving his usual professional remuneration. But the commission of 1s. 6d. was allowed in order to save holders from the necessity of sacrificing a part of their bonus in order to pay such professional remuneration, which the commission itself was provided to supply.