Whereas,an Act of the Congress of the United States approved on the twenty-first day of July, nineteen hundred and twenty-one, authorizes the issue of bonds by the Government of the Philippine Islands up to the amount of thirty million dollars exclusive of those obligations known as "Friar Lands Bonds;" and

Whereas,it is deemed advisable for the protection of the financial interests of the Government of the Philippine Islands to sell bonds up to the maximum amount authorized by said Congress; Now, therefore,

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. The Secretary of War is hereby authorized to issue in the name and on behalf of the Government of the Philippine Islands additional bonds in the amount of five million dollars. The proceeds of the sale of said bonds shall be used for the purpose of protecting the financial interests of said government. The bonds so authorized to be issued shall bear such date and be in such form as the Secretary of War may determine and shall run for such time, not exceeding thirty years from the date of issue, and shall bear such rate of interest as he may determine. The bonds may be coupon bonds 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 may 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 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.

SEC. 2. The Secretary of War is further authorized to sell said bonds on such terms as are most favorable to the Government of the Philippines, and shall deposit the proceeds of the sales thereof with an authorized depository or depositories of the Government of the Philippines in the United States to the credit of the Treasurer of the Philippine Islands, and when so deposited said funds shall form part of the general funds of the Insular Treasury.

SEC. 3. A sinking fund is hereby created for the payment of the bonds issued under the provisions of this Act, in such manner that the Total amount thereof at each annual due date of the bonds 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 sinnking fund shall be under the custody of the Insular Treasurer who shall invest it in such manner as the Secretary of Finance may approve, in accordance with the provisions of law, if any, governing the investment of sinking funds.

SEC. 4. A standing annual appropriation is hereby made out of the general funds in the Insular Treasury not otherwise appropriated, of such sums as may be necessary to provide for the sinking fund mentioned in the last preceding section and the interest on the bonds issued by virtue of this Act.

SEC. 5. An appropriation is 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.

SEC. 6. This Act shall take effect on its approval.

Approved, February 2, 1922.