Section 4
SEC. 4. Section sixteen hundred and twenty-four of the Administrative Code, as amended by said section one of Act Numbered Twenty-seven hundred and seventy-six, shall hereafter read as follows: "SEC. 1624. Currency Reserve Fund—How constituted.— For the maintenance of the parity of the Philippine silver peso with the gold peso and for the exchange of Treasury certificates authorized by article six there is constituted in the Insular Treasury a continuing and reimbursable special fund to be denominated the currency reserve fund, which shall be maintained from the following sources: "(a) From the silver pesos and gold coin of the United pesos and sold coin, states received in exchange for the Treasury certificates sold. "(b) Proceeds of certificates of indebtedness. "(c) Profits of seigniorage made by the Insular Government in the purchase of silver bullion and the coinage therefrom as well as the profits derived from the recoinage of Philippine coins of greater weight and fineness than those prescribed herein, and the issue of the Philippine pesos and the subsidiary and minor coins. "(d) Profits from the sale of exchange by the Insular Government between the Philippine Islands and the United States. "(e) Proceeds of forfeitures of silver coin or bullion the exportation or importation of which is attempted or effected contrary to law. "(f) Interest or other profit from investment or deposit made from the currency reserve fund. "(g) Premiums arising from the sale of interisland telegraphic transfers and demand drafts sold in Manila on provincial treasurers. "(h) Other receipts derived by the Insular Government from the exercise of its functions, of furnishing a convenient and stable currency for the Islands. "With the approval of the Secretary of Finance, the Treasurer of the Philippine Islands may substitute for any part of the money paid into the currency reserve fund, gold coin of the United States equal in value, and the said Secretary of Finance is, under the approval of the Governor-General, empowered to sell Government silver when the public welfare so requires. "The currency reserve fund shall be held in the Treasury at Manila or may in part, at the discretion of the Governor-General and upon the recommendation of the Secretary of Finance, on terms accepted by the former, be kept on deposit with branches of the Philippine Treasury in the United States; and the Governor-General is hereby authorized, upon recommendation of the Secretary of Finance, to designate such depositaries of the Philippine Government in the United States among member banks of the federal reserve system as he may deem advisable to be branches of the Philippine Treasury: Provided, however, That not more than twenty per cent of the currency reserve fund shall be deposited with any single branch depositary in the United States, except the bank where the Treasurer of the Philippine Islands keeps his deposits in current account in connection with his exchange operations. "The currency reserve fund shall not at any time be less in amount than sixty per cent of the nominal value of the Treasury certificates in circulation up to a total circulation of one hundred twenty million pesos, and one hundred per cent of such circulation in excess of one hundred twenty million pesos, increased by the proceeds of such certificates of indebtedness as may be sold as hereinafter provided, and if at any time, and for whatever reason, it shall fall below the limit herein fixed, the amount necessary to bring it up to the required minimum shall be considered automatically appropriated out of any funds in the Insular Treasury or thereafter paid in not appropriated to meet the payment of the interest, sinking fund and principal of the public debt; and amounts thus automatically appropriated shall be transferred forthwith by the Insular Treasurer to the currency reserve fund: Provided, That amounts invested in silver or gold bullion or advanced for the purchase of same for coinage into Philippine currency, or preservation in said form, may lawfully be counted as part of said fund: And provided, further, That, when necessary to increase the currency reserve fund in the United States, the Governor-General, with the consent of the presiding officers of both Houses of the Legislature, may order temporary certificates of indebtedness issued within the conditions of section six of the Act of Congress of March second, nineteen hundred and three, entitled 'An Act to establish a standard of value and to provide for a coinage system in the Philippine Islands.' "Any surplus in the currency reserve fund above the minimum established, including all investments of the same, is hereby transferred to the general fund in the Treasury, and any surplus hereafter accumulated in excess of twenty-five per cent of the minimum established may be transferred to the general fund entirely or in part, upon recommendation of the Secretary of Finance approved by the Governor-General."