Law Summary

SECTION 1: Establishment of the Gold-Standard Fund

• Legal Principle: The Gold-Standard Fund is fixed at 35% of the government's circulating money, excluding silver certificates backed by a gold reserve.
• Key Definitions:
  • Gold-Standard Fund: A fund established to maintain the parity between the gold peso and the silver peso.
• Requirements:
  • The fund includes proceeds from certificates of indebtedness issued under prior legislation (Act of Congress dated March 2, 1903).
• Notable Provisions:
  • The fund must be used exclusively to maintain the parity between the gold peso and the silver peso.

SECTION 2: Management of Excess Funds

• Legal Principle: Any funds exceeding the fixed percentage of the Gold-Standard Fund are to be deposited into the Insular Treasury's general fund.
• Key Definitions:
  • General Fund: The fund available for appropriation by the Philippine Legislature for general purposes.
• Requirements:
  • All excess funds, including interest and other accruals, are classified as miscellaneous receipts.
• Consequences:
  • The excess funds are to be appropriated like any other moneys in the general fund.

SECTION 3: Investment of the Gold-Standard Fund

• Legal Principle: Up to 50% of the Gold-Standard Fund may be invested in public works and railway projects with prior approval from the Governor-General.
• Key Definitions:
  • Insular Treasurer: The official responsible for managing investments from the Gold-Standard Fund.
  • Public Works: Projects particularly those generating revenue.
• Requirements:
  • Loans must not exceed ten years and will be charged 3% interest per annum.
  • Half of the invested amount may be allocated for loans to the Manila Railroad Company for specific railway projects.
• Timeframes:
  • Total payment for loans should not exceed 30 months from the loan date.

SECTION 4: Reporting Obligations

• Legal Principle: The Insular Treasurer must report on the Gold-Standard Fund's transactions annually.
• Requirements:
  • A detailed report must be submitted to the Governor-General at the start of each regular legislative session.
  • The report is subject to the Governor-General's approval before being sent to the Philippine Legislature.

SECTION 5: Effectivity

• Legal Principle: The Act takes effect immediately upon passage due to the public good requiring its swift enactment.
• Key Definitions:
  • Public Good: Justification for the immediate enactment of the Act.

Key Takeaways

• The Gold-Standard Fund is fixed at 35% of circulating government money, distinct from silver certificate reserves.
• Excess funds are directed to the general fund for legislative appropriation.
• The Insular Treasurer has the authority to invest a portion of the fund in public works and railway projects, subject to regulatory approval.
• Annual reporting is mandated for transparency and accountability in the management of the Gold-Standard Fund.
• The Act is effective immediately upon passage, emphasizing its urgency for public benefit.