The Secretary to the Treasury has forwarded for advice the following memorandum:

Messrs A.B. & Son of King William Street, Adelaide, are known to have received from bond owners certain War Gratuity Bonds.

2. In view of certain information obtained by the Treasury, a demand under regulation 16 of the War Gratuity Regulations was forwarded to each member of the firm for the return of all War Gratuity Bonds in his possession or in the possession of the firm of B. & Son. One member of the firm (C.D.B.) replied that he had no Bonds in his possession and also that the firm of A.B. & Son have none in their possession. The other member of the firm (A.B.) states that he has no War Gratuity Bonds in his possession.
3. Reports have been received from bond owners which indicate that there is no doubt that a number of Bonds were at some time in the possession of this firm or one of the two members thereof. It seems probable that, in some manner, these Bonds are at present under their control or direction.
4. Will the Secretary please advise whether it is considered that the Commonwealth can take any effective steps to secure such Bonds.

In my opinion, in the absence of proof as to the persons who hold the Bonds, it is not possible to take any effective steps to recover the Bonds.

Provision could, however, I think, be made in the War Gratuity Regulations for the cancellation of such Bonds.

A regulation in the following terms would, I think, meet the case:

After regulation 16 of the War Gratuity Regulations the following regulation is inserted:

16A If the Secretary to the Treasury has reason to believe that a War Gratuity Bond is, otherwise than in pursuance of the Act or these Regulations, in the possession of any person other than the person to whom the Bond was issued, the Secretary to the Treasury may cancel the Bond.

[Vol. 18, p. 89]