Unit and Standards of Monetary Value
- The Philippine gold peso is set as the unit of value, defined as 0.8359 grams of nine-tenths fine gold.
- Two gold pesos are equivalent in weight and value to one U.S. gold dollar.
Specifications of Philippine Coins
- Peso equals 100 centavos, contains 20 grams of silver 0.800 fine.
- Denominations include 50, 20, 10, 5, and 1 centavo coins with specified silver or alloy content.
- Governor-General may reduce weight and fineness upon proclamation and legislature consent.
Legal Tender Status
- Silver pesos and U.S. gold coins (at 1 dollar = 2 pesos) are legal tender for all debts.
- Subsidiary silver coins legal tender up to twenty pesos; nickel and copper coins up to two pesos.
Coinage and Recoinage Procedures
- Minting authorized domestically and in U.S. mints via contract.
- Designs approved by Secretary of Finance and Governor-General.
- Coins of greater weight/fineness or mutilated coins submitted for recoinage; losses or gains charged to the currency reserve fund.
Handling of Counterfeit Coins
- Counterfeit coins must be stamped 'false' upon receipt by government treasury or banks.
Currency Exchange Functions
- Silver pesos exchangeable for smaller denominations in multiples of ten pesos at Treasury and provincial offices.
- Worn or mutilated U.S. notes accepted and forwarded for redemption.
- Exchange of drafts and telegraphic transfers allowed between Insular and provincial treasurers with premiums set by the Department Head.
Maintenance of Currency Parity
- Insular Treasurer authorized to maintain parity between silver and gold pesos through exchanges and sales with premiums.
- United States and Philippine currency exchanges conducted under authorization.
- Withdrawal of currency from circulation regulated for maintaining balance.
Issuance and Management of Treasury Certificates
- Certificates issued for deposits of silver pesos or U.S. gold coin, denominated between one and five hundred pesos.
- Certificates receivable for customs and public dues and countable as bank reserves.
- Strict procedures for design, printing, delivery, safekeeping, withdrawal, and destruction of certificates.
- Records maintained by Treasurer and Auditor with destruction overseen by appointed committee.
Establishment and Management of Currency Reserve Fund
- Fund constituted to maintain silver-gold peso parity and facilitate certificate exchanges.
- Fund sources include exchanged silver/gold coins, proceeds of indebtedness certificates, seigniorage profits, exchanges, forfeitures, interest, project receipts, and premiums.
- Fund held in Manila Treasury or U.S. branches, with rules on maximum deposits.
- Minimum fund amount must cover certificates in circulation plus 15% of government money in circulation.
- Automatic appropriation to maintain minimum fund level; possible temporary issuance of indebtedness certificates.
- Surplus funds may be invested or transferred with authorization.
Use and Limitations of Currency Reserve Fund
- Fund used exclusively for certificate redemption, silver bullion purchase, coinage expenses, currency circulation maintenance, and compensation for currency handling personnel.
Reporting Requirements
- Insular Treasurer to submit annual detailed report on currency reserve fund to Department Head and Governor-General for legislative dissemination.
Repeal and Effective Date
- Conflicting laws repealed.
- Act takes effect upon proclamation following U.S. Presidential approval.