Establishment of the Division of Currency
- Creation of the Division of Currency within the Bureau of the Insular Treasury.
- The Chief of the Division is appointed by the Civil Governor with Commission's approval.
- Annual salary fixed at six thousand pesos.
- The Chief is assisted by accountants and clerical staff as authorized by law.
Duties of the Chief of the Division of Currency
- Examine Treasurer and Auditor books to report on funds constituting the gold-standard fund.
- Request segregation of the gold-standard fund in official accounts; disputes resolved by the Secretary of Finance and Justice.
- Initial receipts related to the fund and oversee specific notation of withdrawals and transfers.
Transaction Oversight by the Chief of the Division of Currency
- All treasury transactions involving coinage, currency circulation, gold-standard fund maintenance, parity maintenance, and silver certificates issuance/retirement require Chief's prior submission and notation.
Accounting and Reporting Responsibilities
- Maintain separate books for financial operations related to coinage, currency matters, and gold-standard fund administration.
- Submit monthly financial statements to the Insular Treasurer and Secretary of Finance and Justice.
Custody and Control of the Fund
- Actual custody and control remain with the Insular Treasurer.
- Chief of the Division operates under the Insular Treasurer's supervision.
Powers and Duties of the Insular Treasurer to Maintain Currency Parity
- Authorized to exchange Philippine and U.S. currencies under specified terms and premia.
- May charge premiums for demand drafts and telegraphic transfers; premium adjustments authorized by Secretary of Finance and Justice.
- Exchange of U.S. currency and gold coin/bars for Philippine currency upon Secretary's approval.
- Withdrawal and management of currency to maintain parity and circulation volume matching trade demands.
Exchange of Philippine and Subsidiary Coins
- Provincial and Insular Treasurers authorized to exchange Philippine pesos for smaller silver coins and minor coins of nickel and copper in multiples of ten pesos.
- Reciprocal exchange from subsidiary coins to Philippine pesos also authorized.
Supervision and Control of Silver Certificates
- Issue and redemption supervised by Chief of the Division of Currency.
- Detailed record-keeping and accounting of silver certificates required.
Procedures for Handling Silver Certificates
- Certificates designed, printed, and delivered through U.S. Treasury Bureau with specified procedures.
- Certificates delivered to Philippine Treasurer without seal; then sent from Bureau of Insular Affairs with verification notices to Auditor.
- Treasurer affixes seal and processes certificates, securing them in a reserve vault until required for circulation.
- Certificates in reserve vault treated as non-cash but accounted for as money.
- Certificates withdrawn for circulation as needed; proceeds held as a trust fund.
- Detailed records of serial numbers and amounts maintained by Treasurer and Auditor.
- Unfit certificates destroyed under supervision after official verification.
Annual and Other Reporting Requirements
- Chief of Division must submit detailed annual and other reports as required to the Insular Treasurer.
Appointment Provisions
- Except for Chief, all Division appointments made by Insular Treasurer according to Civil Service Act.
Expediency of Enactment
- The Act’s passage is expedited due to public interest.
Effectivity
- The Act takes effect immediately upon its passage.