REPUBLIC OF THE PHILIPPINES
OFFICE OF THE PRESIDENT
MANILA

BY THE PRESIDENT OF THE REPUBLIC
OF THE PHILIPPINES

PROCLAMATION NO. 5

ANNOUNCING THE ASSUMPTION BY THE REPUBLIC OF THE PHILIPPINES OF THE OBLIGATION OF REDEEMING NOTES ISSUED BY THE BANK OF THE PHILIPPINE ISLANDS STILL REMAINING IN CIRCULATION.

WHEREAS, the Bank of the Philippine Islands, in accordance with the authority granted under its charter (Act No. 1790, as amended). issued circulating notes of various denominations;

WHEREAS, under Article XXXI of its charter, the Bank of the Philippine Islands was required to maintain a reserve fund and to pay certain annuities to be available for the redemption of the notes of said Bank;

WHEREAS, for the purposes of the requirements of said Article XXXI of its charter, Executive Order No. Ill was issued on December 14, 1942, by the Chairman of the former Executive Commission, requiring the Bank, among others, to deposit with the National Treasurer certain sums for the redemption of its outstanding circulating notes;

WHEREAS, in compliance with the provisions of said Executive Order No. Ill, the Bank of the Philippine Islands has deposited the amounts required therein, which are now held by the National Treasurer to the credit of a special fund denominated “Notes of the Bank of the Philippine Islands Redemption Fund,” and are available exclusively for the redemption of said notice; and

WHEREAS, the bulk of the circulating notes issued by the Bank have already been redeemed and the outstanding circulating notes of the Bank of the Philippine Islands at the inception of the present administration amounted only to one million three hundred and fifty thousand pesos;

Now, therefore, I, Jose P. Laurel, President of the Republic of the Philippines, do hereby proclaim that the Republic of the Philippines hereby assumes the obligation of redeeming upon their presentation any notes of the Bank of the Philippine Islands remaining in circulation: Provided, however, That the Government does not assume any obligation with regard to the notes issued by said Bank under the name of “Banco Español-Filipino.”

The Minister of Finance is hereby authorized to issue rules and regulations prescribing the manner for the redemption of said circulating notes, and for this purpose, and with a view to avoiding the possibility of having spurious or counterfeit notes redeemed, he may make the necessary arrangements with the Bank of the Philippine Islands or other competent entities, whereby such notes may be redeemed through said Bank or other entities.

Any person holding or keeping in his possession any circulating notes issued by the Bank of the Philippine Islands shall present said notes for redemption in accordance with the procedure to be prescribed by the Minister of Finance, within a period of ninety days from the date of the issuance of this proclamation in the case of residents within the City of Manila, and within one hundred eighty days in the case of residents outside the City of Manila. Failure to present such notes for redemption within the period herein specified shall bar the holder thereof from the benefits of redemption.

In witness whereof, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed.

Done in the City of Manila, this third day of December, in the year of Our Lord, nineteen hundred and forty-three, and of the Republic of the Philippines, the first.

(Sgd.) JOSE P. LAUREL
President of the Republic
of the Philippines

By the President:
(Sgd.) JOSE G. SANVICTORES
Acting Executive Secretary

Source: Office of the Solicitor General Library