Issuance of bonds of the Philippine Government.
Section 3
SEC. 3. Issuance of bonds of the Philippine Government.— The Secretary of War is hereby authorized to issue, in the -name and behalf of the Government of the Philippine Islands, additional bonds in the amount of twenty-three million five hundred thousand dollars, the issue whereof may be permitted under appropriate legislation on the part of the Congress of the United States to be hereafter enacted. The bonds so authorized to be issued shall bear such date and be in such form as the Secretary of War may deter mine and shall run for such time, not exceeding thirty years from date of issue, and shall bear such rate of interest as he may determine. The bonds may be coupon or registered bonds, convertible, in the discretion of the Secretary of War, into either form, and in the case of the issue or transfer of any registered bonds, the same shall be registered in the Treasury of the United States. Both principal and interest -shall be payable in gold coin of the United States at the ' Treasury of the United States. Said bonds shall be exempt from taxation by the Government of the United States, or by the Government of the Philippine Islands or of any political or municipal subdivision thereof, or by any State or territory of the United States, or by any county, municipality, or other municipal subdivision of any State or territory of the United States or by the District of Columbia, which fact shall be stated upon their face, by virtue of section one of the Act of Congress approved February sixth, nineteen hundred and five, according to which Act as well as in accordance with the Act of Congress approved on August twenty-ninth, nineteen hundred and sixteen, as amended, and in accordance with this Act, the said bonds are issued. The Secretary of War is further authorized to sell said bonds upon such terms as, in his judgment, are most favorable to the Government of the Philippine Islands, and he shall deposit the proceeds of the sale thereof with the authorized depository or depositories of the Philippine Islands in the United States, to the credit of the Treasurer of the Philippine Islands. A sinking fund or funds is hereby created for the payment ¦ of the bonds issued, in such manner that the total amount thereof at each annual date of the bond issues shall be equal to the total of an annuity of such a sum, for each million pesos of bonds outstanding, as with interest at the rate of three and one-half per centum per annum, shall be sufficient to retire said bonds at maturity. Such sinking fund or funds shall be under the custody of the Insular Treasurer, who shall invest it, in such manner as the Secretary of Finance may recommend, in accordance with the provisions of law governing the investment of sinking funds. A standing annual appropriation is hereby made out of the general funds in the Insular Treasury not otherwise appropriated of such a sum as may be necessary to provide for the sinking fund or funds mentioned in the last preceding section and the payment of interest on the bonds issued by virtue of this Act. An appropriation is also hereby made out of the general funds in the Insular Treasury not otherwise appropriated, of a sum sufficient to cover the expenses of the issue and sale of the bonds issued by virtue of this Act.