Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Section one of Act Numbered Seventeen hundred and twenty-nine, as amended by Acts Numbered Twenty-four hundred and twenty-live and Twenty-five hundred and ninety-three, is hereby further amended to read as follows:

"SECTION 1. For the purpose of creating a sinking fund for redeeming the bonds issued in accordance with the provisions of Acts Numbered Thirteen hundred and one, Fourteen hundred and forty-four, and Nineteeen hundred and fifty-four, there is hereby appropriated, from and after the date of each anniversary of the issue of said bonds, the sum necessary in order that the total of said sinking fund shall be equal to the amount of an annuity of nineteen thousand three hundred and seventy-one pesos and thirty-three centavos for each one million pesos of bonds outstanding, with interest at the rate of three and one-half per centum per annum. Said appropriation shall continue in force until such time as said sinking fund shall equal the par value of the outstanding bonds herein mentioned. ' "The said sinking fund shall be available for investment by the Insular Treasurer, with the approval of the Governor-General, in such loans and securities as authorized for the Postal Savings Bank by existing laws; by deposit at interest with qualified depositaries of public moneys; in loans for periods not exceeding ten years in any instance, to provincial and municipal governments for the construction of public works of a permanent character, and the payment of the provincial and municipal share of the cost of cadastral surveys, or such proportion of the cost as may be assumed by a province under the provisions of section eighteen of Act Numbered Twenty-two hundred and fifty-nine, as amended, and in loans to the Manila Railroad Company to enable that company to comply with the provisions of paragraph two of the memorandum of agreement set forth in section one of Act Numbered Twenty-five hundred and seventy-four, all in accordance with the provisions of paragraphs four and five of said memorandum of agreement: Provided, That the rates of interest on all loans made by authority of this section shall be fixed by the Governor-General except as herein otherwise provided: And provided further, That no loans shall be made from this funds for such period that the same will extend beyond the period for redemption of the bonds for which this sinking fund is created: And provided further, That said loans to -the Manila Railroad Company shall be evidenced by a note or notes bearing interest at the rate of four per centum per annum, and secured in accordance with paragraph four of said memorandum of agreement set forth in section one of Act Numbered Twenty-five hundred and seventy-four."

SEC. 2. Acts Numbered Twenty-four hundred and twenty-five, Twenty-five hundred and ninety-three, and all other Acts or parts of Acts inconsistent herewith are hereby repealed.

SEC. 3. This Act shall take effect on its approval.

Approved, February 18, 1918.