Money paid to the guardian of an incompetent veteran under the War Risk Insurance and the World War Veterans' Acts remains the money of the United States. United States v. Hall, 98 U.S. 343; Eckert Co. v. McKee, 99 Bush 355; Kellogg v. Waite, 12 Allen 529; Smith v. Kansas City Title Trust Co., 255 U.S. 180; Bramwell v. U.S. Fidelity Co., 269 U.S. 483; 295 F. 331; 299 F. 705; U.S. Veterans' Bureau v. Thomas, 156 Va. 902. See State v. Security Bank, 121 Neb. 515; State v. First State Bank, 121 Neb. 521; Butler v. Cantley, 47 S.W.2d 258; Anderson v. Olivia State Bank, 186 Minn. 396; Nelson v. Colgrove Co., 267 Ill. App. 317. The bank was "insolvent" and committed an act of bankruptcy, within the meaning of R.S. § 3466.

State v. Bartly, 41 Neb. 277; State v. Young, 18 Wn. 21; Drake v. Crane, 127 Mo. 85; Kennedy v. Hageman, 170 N.Y.S. 828; Round Prairie Bank of Fillmore v. Downey, 64 S.W.2d 701; Matter of Smith, 279 N.Y. 479; Matter of Stupack, 274 N.Y. 198; McCune's Est. v. Daniel, 76 S.W.2d 403. (3) The respondent is estopped to now complain of the purchase of the notes or bonds by the guardian because he instructed and advised the guardian to purchase them and approved the purchase of them in eight annual settlements and in the settlement to resignation. Matter of George D. Newton, decided by the Supreme Court of Livingstone County, New York, April 18, 1938, not reported; In the Matter of McDonald, 162 Misc. 847; Hines, Administrator, v. Hoop, 89 S.W.2d 52; U.S. Veterans' Bureau v. Thomas, 156 Va. 902; State v. Bank, 121 Neb. 521; Anderson v. Bank, 186 Minn. 396; Nelson v. Colgrove Co., 267 Ill. App. 317; Ramisch v. Fulton, 180 N.E. 135; In re Fisher's Estate, 302 Pa. 516; Payne v. Jorday, 152 Ga. 367; In re Murphy's Committee, 134 Misc. 683; Tamma County v. Kepler, 187 Iowa 34; Spicer v. Smith, 244 Ky. 68; Spicer v. Smith, 288 U.S. 430; Butler v. Cantley, 47 S.W.2d 258; Re Eigermann, 14 N.E.2d 585; Hines v. Ayotte, 189 A. 835. (4) Even if the notes bought by the guardian were an illegal investment, the American Surety Company of New York would not be liable on its bond because of the purchase of them by the guardian for the reason that they were purchased long before said company signed the guardian's bond and the said bond is not retrospective either under its terms or under the law. Wolff v. Berning, 74 Mo. 87; State to Use v. Jones, 89 Mo. 470; State to Use v. Drury, 36 Mo. 382; State ex rel. v. Elliott, 157 Mo. 609; Lincoln Trust Co. v. Wolff, 91 Mo. App. 133; State ex rel. v. Hardy, 200 Mo. App. 405.

or claim for preference is based on the fact that the funds here in controversy originated or came from money paid to her as insurance due her from the government on a policy of war risk insurance on her son who was a veteran in the World War. The plaintiff relies upon the World War Veterans' Act of Congress of 1928 found in the United States Code Annotated, Title 38, section 454, page 217, which provides that such funds as this involved herein "payable under Parts II, III, and IV, respectively, shall not be assignable; shall not be subject to the claims of creditors of any person to whom an award is made under Parts II, III, or IV; and shall be exempt from all taxation. Such compensation, insurance, and maintenance and support allowance shall be subject to any claims which the United States may have, under Parts II, III, IV, and V, against the person on whose account the compensation, insurance, or maintenance and support allowance is payable." The appellant relies upon the case of Nelson v. Colegrove Co. State Bank, 267 Ill. App. 317, in which a guardian of a disabled war veteran was allowed a preferred claim in a closed bank. At the time this opinion was written the Supreme Court of the United States had not passed upon this question. The State courts are in conflict in this matter, some holding that such claims are preferred, and others holding they are not. The Appellate Court in the Nelson case followed that line of decisions holding that such claims should be preferred as governed by the statutes of the United States. Since this decision the Supreme Court has had occasion to render an opinion in this matter.

The authorities of various States have been in conflict as to what constituted government funds within the meaning of sec. 3466, supra, in order to warrant priority to them in the distribution of the assets of insolvent banks or estates. State ex rel. Sorensen v. Security Bank of Creighton, 121 Neb. 521, 237 N.W. 620, where money payable under a war risk insurance policy had been transmitted by check drawn on the United States treasury to the administratrix of the estate of the insured, a deceased soldier, and deposited by her in a bank that subsequently became insolvent; State ex rel. Spillman v. First State Bank of Pawnee City, 121 Neb. 515, 237 N.W. 623, where war risk insurance payments had been made by the United States to the guardian of an incompetent soldier and deposited by him in a bank thereafter closed for insolvency; and People ex rel. Oscar Nelson, Auditor of Public Accounts of the State of Illinois v. John B. Colgrove Company State Bank, 267 Ill. App. 317, where the guardians of minor children (in one instance the children of a permanently and totally disabled veteran of the World War, and, in the other, a minor brother of a soldier who died in the service) had received payments of money from the United States under the terms of the World War Veteran's Act for the use and benefit of their wards, and deposited same in a bank that afterward became insolvent, all held that funds deposited by the guardian of a veteran or his dependents, or the administrator of a veteran's estate, which represented proceeds of war risk insurance policies, disability payments or other governmental benefits provided for former soldiers and their dependents, and which had not reached the hands of the ultimate beneficiary or beneficiaries, remained government funds until their distribution and allowed them preference upon claims against the estates of the insolvent banks involved on the theory that the guardian or administrator was the agent of the United Stat