In re the Accounting of City Bank Farmers Trust Co.

Collins, S.

The accounting trustee asks instructions on allocating, as between principal and income, the discount upon the redemption of United States Savings Bonds, Series G. In 1941, and 1942, the trustee made two purchases of Series G bonds, each in the sum of $50,000. The bonds were due, respectively, October 1, 1953, and January 1, 1954. In September, 1950, the trustee determined to redeem some of the bonds in order to take advantage of the authority granted to trustees by section 21 of the Personal Property Law, as amended by chapter 464 of the Laws of 1950. Bonds of the face value of…