Question & AnswerQ&A (Act No. 2776)
Under Act No. 2776, a 'silver peso' or 'peso' means the metallic silver peso coined and issued by the Philippine Government under the authority of this Act or laws enacted by the U.S. Congress.
The unit of monetary value in the Philippine Islands is the gold peso, consisting of 0.8359 grams of gold, nine-tenths fine; two gold pesos equal the U.S. standard gold dollar in weight, fineness, and value.
The silver peso contains 20 grams of silver eight hundred thousandths fine; the 50-centavo piece contains 10 grams of silver seven hundred fifty thousandths fine; the 20-centavo piece contains 4 grams silver, same fineness; the 10-centavo piece has 2 grams silver, same fineness; 5-centavo piece contains 4.87 grams alloy of 75% copper and 25% nickel; 1-centavo piece contains 5.184 grams alloy of 95% copper and 5% tin and zinc.
The Philippine silver peso and U.S. gold coins are legal tender in all amounts; other silver subsidiary coins are legal tender up to 20 pesos; nickel and copper coins are legal tender up to 2 pesos.
The Governor-General, with consent of presiding officers of both Houses of Legislature, may order by proclamation the reduction of weight and fineness if public good requires it.
The currency reserve fund is to maintain parity of the Philippine silver peso with the gold peso and to support currency stability, funded from coins deposited, certificates of indebtedness, seigniorage profits, exchange sales profits, and other related receipts.
The word 'false' shall be stamped on counterfeit coins with legible characters using an instrument prescribed by the Insular Treasurer.
Silver pesos may be exchanged at the Treasury or provincial treasurers in sums of 10 pesos or multiples thereof for subsidiary coins of smaller denominations.
The currency reserve fund may only be used for redemption of treasury certificates, purchase of silver bullion, expenses incidental to coinage and printing, transportation, maintaining currency circulation and parity, and payment for verification of mutilated currency before destruction.