BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 25
PROMULGATING RULES AND REGULATIONS CONCERNING CURRENCY,
BOOKS AND ACCOUNTS OF BANKS AND THEIR BRANCHES AND AGENCIES IN THE
PROVINCES, PROVINCIAL, CITY AND MUNICIPAL TREASURIES AND OTHER GOVERNMENT
ACCOUNTABLE OFFICES AND DEBT MORATORIUM
WHEREAS, it is essential that the financial and monetary structure
of the Commonwealth of the Philippines be maintained on a sound basis.
NOW, THEREFORE, I, SERGIO OSMEÑA, President of the Philippines, by
virtue of the powers vested in me by the Constitution and the laws of the
Commonwealth of the Philippines, do hereby promulgate the following rules
and regulations concerning currency, books and accounts and debt moratorium
for all areas free from enemy occupation and control throughout the
Philippines.
I. CURRENCY
1. The new Victory Series
of Philippine Treasury Certificates (Victory Pesos) and the Philippine
coins identical to pre-war issue now in circulation will be legal tender.
2. All pre-war Philippine Treasury Certificates and coins will
continue to be legal tender and may be exchanged at par for the
Victory
Pesos if so desired by the holders.
3. The rate of exchange will be two
Victory Pesos for one United
States dollar. Transactions at any other rate are prohibited.
4. For each province liberated from the enemy, an Emergency
Currency Committee will be appointed by the United States Army and the
Commonwealth Government to study, investigate and report on the bona-fide
emergency currencies issued by duly authorized currency boards. The
Committee will ascertain the extent of the authority given to such boards,
the amount of emergency currency actually printed and issued, and will
recommend as soon as possible the redemption of the currencies found to be
legally issued. In case it is found out that in a given province more
emergency currencies were in circulation than the amount actually authorized
to be issued, the Committee will recommend what action shall be taken:
Provided, however,that counterfeit emergency currencies will not be
redeemed.
5. The printing and issuance of additional
emergency currencies are
hereby prohibited.
6. Japanese currency,
Philippine National Bank Notes (except duly
authorized emergency issues),
Notes of the Bank of the Philippine Islands,
New Central Bank Notes and unauthorized emergency currencies are not legal
tender. Transactions in these currencies are prohibited.
II. BANKS, TREASURIES AND OTHER
ACCOUNTABLE OFFICERS
1. The books of banks, their branches and agencies in the
provinces, provincial, city and municipal treasuries and other government
accountable officers will be sealed forthwith and existing accounts frozen,
as of the date the province, city, or municipality is liberated from enemy
occupation and control, pending further action by the Government. All books,
accounts and previous records as closed shall become inactive, filed and
preserved for reference and other purposes as may be required.
2. Provincial and municipal treasurers and other accountable
officials will open new books of account as soon as their respective offices
are duly reconstituted, observing strictly the existing accounting laws,
rules and regulations pertaining to accounts and accounting system of the
Commonwealth of the Philippines.
3. Provincial treasurers will accept for safekeeping new savings
deposits in pre-war Philippine Treasury Certificates and
Victory Pesos.
Withdrawals in cash only of not less than one peso may be made from each
savings account upon presentation of the deposit book. No interest will
accrue on such deposit. In addition to opening new savings accounts,
provincial treasuries will provide facilities for exchanging United States
dollars for Victory Pesos.
III. DEBT MORATORIUM
1. Payment of all debts and other monetary obligation contracted
after December 31, 1941, except debts and other monetary obligations entered
into in any area after declaration by Executive Order that such area has
been freed from enemy occupation and control, is temporarily suspended
pending action by the Commonwealth Government.
Done at the Seat of Government in the Field, this 18th day of
November, in the year of Our Lord, nineteen hundred and forty-four, and of
the Commonwealth of the Philippines, the tenth.
(Sgd.) SERGIO OSMEÑA
President of
the Philippines
BY THE PRESIDENT:
(Sgd.) ARTURO B. ROTOR
Secretary to the
President