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THE SECRETARY CF STATE WASHINGTON, D. C. DEPARTMENT OF STATE WASHINGTON August 8, 1935 In reply refer t o LA 837.516/295 My dear Mr. Eccles: With reference to my l e t t e r of August 2 , 1935, enclosing a copy of a "Project to Establish a Cuban Monetary System and to S t a b i l i z e Cuban Currency11, I attach hereto a copy of a revised draft of this project as made by Mr. Schwul Sincerely you For t i e Secretary of State: Enclosure: Revised draft of project, as stated* Assistant Secretary* Mr. Marriner S. Eccles, Governor, Federal Reserve Board, Washington, D. C. a OPT Enclosure to Deepatoh Mo. 3743 of August 2, 1935, frosi the Embassy at Habana A PROJECT TO S8TABLI8H A CUBAN MOMKTARY 8T8TOI AMD TO STABILIZE OUBAM OURRMCT ARTICLE X* Unit 2i Monetary Value: On and after the effect Ire date of this Act, the unit of Monetary value shall be the peso which shall be issued by the National Government of the Republic through the Currency Commission hereinafter provided for. The peso shall be issued hereafter in the f o m of currency notes and subsidiary and minor oolns which shall be the full and unrestricted obligations of the National Government and such notes shall be Issued in the denominations hereinafter provided for. The peso shall be equal in value to one dollar in any currency which is legal tender for public and private debts in the United States of America. 4pRTIGL£ 2. Legal Tender: The currency note, the silver peso and the silver certificate shall be legal tender for all debts public and private within the Republic The silver peso and the silver certificate shall be retired as rapidly as possible from circulation by being exchanged, peso for peso, for currency notes* When so ordered by the Currency Commission, but not before, any part or all of suoh silver pesos and silver certificates, shall, upon reoelpt by the National Treasury, be exchanged for currency notes and retired from circulation. All Government officials and all banks operating in the Republic are hereby directed, when so ordered by the Currency Commission, to turn into the National Treasury for exchange into currency notes, peso for peso, any part or all of suoh silver pesos and silver certificates which they may hold or reoeive in the course of business. All gold and all United States currency and United 3tates oolns in the National, Provincial and Municipal treasuries shall, within thirty days after the effective date of thle Act, be turned m into the Ourrenoy Commission and exchanged, dollar for peso, for ourrenoy notes, m o gold to aoqulred shall bo valued In tho exchange for currency notes in aooordanoo with Deoreto Ley 410 of August 10, 1934. Tho Currency Commission shall lamediately add all such gold, United States ourrenoy and United States coins to tho reserves provided for under Artlole 5 of this Act. Cuban subsidiary oolns of forty oentavos shall bo logal tender in amounts not exoeedlng twenty pesos. Cuban subsidiary oolns of twenty oentavos and ton oentavos shall bo logal tendor in amounts not exceeding ton pesos. Cuban minor oolns of nickel shall be legal tender in amounts not exoeedlng two pesos. On and after the effective date of this Act, no ourrenoy or ooln other than that made legal tender by the provisions of this Artiole shall be legal tender within the Republic, provided, however, that oontracts spoolfloally calling for payment in United States ourrenoy or other foreign ourrenoy shall not be affected by this Act, although the settlement of such contracts in suoh currencies shall not give to suoh currencies the quality of legal tender with respect to any other contracts or transactions, nor shall it give to suoh currencies the privilege of circulating as money within the Republic. On and after the effeetlve date of this Aot no money or currency, other than that made legal tender by the provisions of this Aot, shall be reoelved In settlement of customs duties or any other dues, taxes and payments due to the National, Provincial or Municipal Governments, provided, however, that the Currenoy Commission may, in its discretion, authorise the acceptance of United States currency In all suoh settlements for a period of not to exoeed three years after the effective date of this Act and provided, further, that all suoh United States ourrenoy shall prompt- • I - 8 - ly be turned into the Currency Commission and exchanged for currency notes and suoh United States ourrenoy shall promptly be ad- •J ded to the ourrenoy reserves as provided in Article 5 of this Aot. ARTIOH J. foe Currency Commission: There is hereby created the Cuban Currency Commission which shall consist of three members. There shall also be chosen one alternate for eaoh member who shall serve on the Commission In the absenoe of that member. The members of the Commission and the alternates shall be the following1 a)• The Secretary of Finance who shall aot as Chairman of the Commission. The Secretary of Finanoe shall ohoose his alternate from among the high officials of his department and hit alternate thall serve in his plaoe on the Commission and aot as Chairman thereof In hit absenoe. The Secretary of Finanoe and his alternate shall reoelve no compensation for suoh service. b ) . The representative in the Republlo of the banking institution in the United States of America, which It the principal custodian of the ourrenoy reserves deposited In the United Statet of Amerloa. In aocordanoe with the provisions of this Act. This representative thall choose his alternate from among the members of hit ttaff • The compensation for suoh representative and his alternate for services on the OosMtlssion shall be suoh at may be agreed upon between suoh Institution and the President of the Republlo. In the event suoh institution dots not content to have ltt representative serve on the Commission, the President of the Republlo shall appoint the member and hit alternate from a list of six names submitted by the Cuban Chamber of Corneroe. The compensation of suoh member and hit alternate shall be fixed by the President of the Republlo, but shall net exoeed $5,000 per auras] for the member sad $2,400 per annum for the alternate. o) • A member and his alternate appointed by the President of the Republlo from a list of six names submitted by the Havana Clearing House Association. The compensation of the member and hit alternate thall be fixed by the President but shall not exceed $5000 per annum for the member and $2,400 per annum for the alternate* Any member of the Commission and any alternate may be re* moved at any time by the President of the Republic for cause. » 4• I The nembers of the Commission are hereby authorised to incur suoh clerioal and other expenses as may be indiepensible for carrying on the operations of the Commission and giving effeot to the provisions of this Act. The salaries of the members of the Com- mission and such expanses as may be incurred shall be paid by the National Treasury which shall be reimbursed out of any profits realized from the operations conduoted through the "Sxohange Standard Fund". To defray the organization expenses of the Commission, there is hereby appropriated out of any unappropriated funds in the National Treasury the sum of $25,000* This sum may be drawn upon in suoh manner as may be determined by the Commission. But all expendi- tures from this appropriation shall be reimbursed to the Treasury out of any profits resulting from operations through the "Exchange Standard >\mdH • The members of the Commission and their alternates shall be bonded for such an amount and in such manner as the President of the Republic ?h&ll deem necessary. The Commission shall de- termine *hioh of ite errployees shall be bonded &nd shall fix the amounts of their bonds. *ft*iiL* £. Powers and Duties of the Commission: For the purpose of maintaining the parity of the peso with the legal tender currency of the United States of Anericn, and of keeping the currency equal in volume only to the demands of trade, the Commission is hereby authorised and dlreoted: a)• On demand, at the offioe of the Commission in Havana, to sell for currency notes offered in suas of not less than five thousand pesos, or currency Issued by and/or under the authority of the United States of America, offered in sums of not less than five thousand dollars, exchanp^! for equivalent amounts on the "Exchange Standard »*und" deposited in the United States of America, charging for the same such a premium as may from time to time be determined by the Commission, provided, however, that such premium shall not exoeed the cost of physically transporting the equivalent in United States currency to the Custodian 3ank in the United states of America, plus insurance - 5 and IO00 of intereot during the period of transport! tion; and the Commission is further authorized and directed to instruct any depositories of the current reserve funds in the United States of America to sell for United States currency on demand exohange In 01 of not less than five thousand pesos against the HSx« change Standard Fund" in the Republic of Cuba, charging for the same such a premium as way from time to time be determined by the Commission (rendering accounts therefor to the Commission), provided, however, that such premium shall not exceed the cost of physically transporting the equivalent in Cuban currency from the Custodian Bank in the United Statei Of America to Havana, plus insurance and loss of In-, terest during the period of transportation. 411 such dealings in exchange shall constitute operations through the M Exchange standard Fund" hereinafter provided for. b)• To exohange at par currency issued by and/or under the authority of the TTnlted States o-" 1 erloa for currency notes, and to exchange at par currency notes for currency issued by and/or under the authority of the United States of America. c). To withdraw from circulation currency notes received by the Commission in Havana in the manner provided In paragraphs (a) and (b) of this article, until said currency notes are paid out in response to the demands upon it by the sale ofAexcbange in the United States of America as provided in paragraph (a) of this Article or until said currency notes are needed for the purpose of effecting exctmmret of said currency notes for currency issued by and/or under the authority of the United 3tates of ivnerica as provided by paragraph (b) of this Article. d) • To withdraw from circulation currency Issued by and/ or under the authority of the United States of America received in the Republic of Cuba by the Commission in exchange for currency notes or for exchange sold on the "Exchange Standard Fund" in the United States of America under paragraphs (a) and (b) of this Article. Currency Issued by and/or under the authority of the United States of America 00 obtained shall become part of the HExchange Standard Fund" nnd shall be added to the currency reserves as provided in Article 5 of this Act. "Sxchance Standard Fund": How Constituted; There is hereby established in the National Treasury a separate and trust fund to be designated as the ^Sxch^m:^ Standard "Mndn, which shall at all times include United tatea currency, an«i/or United vtates dollar deposits, in sums not Ie3e than the percentages hereinbelow stipulated of currency notes anrt/or subsidiary and tinor coins in circulation and available for circulation. The stock of unissued or redeemed currency notes and/or subsidiary and minor coins shkll not be considered as money in circulation or available -6for circulation, and such unissued and redeemed ourrenoy notes and/or subsidiary and minor ooins shall be physically held by the Commission until suoh time as they may be paid out and be* oose circulating ourrenoy notes and/or subsidiary and minor ooins under the provisions of this Act. The percentages of circulating ourrenoy notes and/or subsidiary and minor ooins to be maintained at all times in United States ourrenoy or United States dollar deposits shall never be less than the following: Amount of Currency Notes and/or Minimum Reserve to be Main- Subsidiary and Minor Coins in tained in United States Circulation or Available for Currency and/or United Circulation. States Dollar Deposits. • 0 to and including 135,000,000. 15 i From *25,000,001 to and including $50,000,000 30 i From 150,000.001 to and inoluding $75,000,000 45 i For every peso increase in circulation above 575.OOO.OOO, there shall be one dollar of reserve represented by United States ourrenoy or United States dollar deposits. If at any time and for any reason said United States ourrenoy and dollar deposits shall fall below the minimum peroentages hereinabove established, the deficiency shall be made up by the lational Treasury out of any funds then in or available to the National Treasury or thereafter paid into or made available to the la tional Treasury, provided only that suoh funds are not specifically appropriated to meet the payment of the principal, sinking fund or interest of the public debt, and suoh an amount as may be necessary to make up any suoh deficiency shall be oonsidered as automatically appropriated for this purpose, and the Secretary of Finance aad any -7and all other Government official* concerned are hereby authorized and directed to transfer the necessary amount to the "Exchange Standard fund" in United States currency or United States dollar depoelte to melee good euoh deficiency therein. In determining the above percentages, the proceeds of outstanding certificates of Indebtedness (hereinafter provided for) shall be deduoted from the amount of euoh United states currenoy and United States dollar deposits* To the "Exchange Standard Fund" there shall be added from time to time the following: a). All profits of seignorage made in the purchase of bullion and the oolnage therefrom of coins: and all pro* fits from the issue of subsidiary and minor oolns; and all profits whioh may be derived frora the recoinage from time to time of ooins circulating in the Republic. b). All profits from the sale of exchange by the Commission between the Republic and the United States of America for the purpose of maintaining the parity of the peso. c). All premiums arising from the sale of telegraphic transfers and demand drafts by the Commission in Havana upon Provincial Treasurers as hereinafter provided. All interest or other profits from deposits made from the "Exchange Standard Fund" In accordance with this Act. All other receipts derived by the Commission from the exercise of the functions of furnishing a currency to the Republic. • d). e). ARTICLE 6, Expenses to be Defrayed from the "Exchange Standard Fund1*; The "Exchange Standard fund" shall not be ueed to pay any of the expenses of the lational, Provincial or Municipal Governments or any Governmental agency in the Republic or to satisfy any of the appropriations of said Governments or agenoles except only such expenses as follow: a). Those connected with the purchase of bullion or metal to be used for ooinage and the coinage of the ease into money of the Republic and euoh expenses ae nay be incidental to tuoh ooinage. b). Those oonnected with the putting; of money into circulation including the preparation, issue and destruction of currency notes or other Cuban currency. o). Thoee oonnected with the carrying on of suoh transactionsf by exchange or otherwise, as may be authorized by law to maintain the circulation of the currency o* the Republic, to maintain the parity of the peso with the legal tender currency of the United 3tates of Am< rida, and to maintain the parity of value between the peso and subsidiary and minor coins. d). Those oonnected with the general expenses of the Commission. ARTICLE 7. How the -Exchange Standard yund" is to be heldt The "fcr- change Standard Fund* shall be held in especially designated vaults of the lational Treasury in Havana and ouch Fund may be held, in whole or in part, in the form of deposits payable in United States currency with any Federal Reserve Bank in the United States of America or with such member banks of such federal Reserve Banks in the United States of America as may be designated from time to time by the Commission, provided, however, that no portion of the Fund shall ever be deposited in any bank incorporated under the laws of the Republic of Cuba, or the principal business of which is done in the Republic of Cuba, and orovided that not more than twenty percent of the Fund shall be deposited with any single depository except the depository in whioh the Commission keeps ite leposits in current account in connection with ite exchange operations. Suon deposits in current account shall not be considered in determining the twenty percent limitation. 8uoh portion of the Fund as is held in the Rational Treasury in Havana shall be physically segregated in especially designated vaults of the National Treasury and shall be kept separate and detached in every respect from all other funds of the lational Treasury, and shall be under the Joint and exclusive custody of the three members of the Commission. lo funds may h# withdrawn from the "Exchange Standard Fund" in the Rational Treasury except upon -9written order signed by at least two members of the Commission. Ho checks or other orders for payment upon the deposits of the "Exchange Standard Fund" in the depositories in the United States of America shall be valid unless signed by two members of the Commission. The Commission shall establish suoh a system of accounting as will enable the members of the Commission to know at all times the condition of the "Exchange Standard Fund", and the Commission shall establish an adequate continuous control of the accounts and operations of the Fund through the installation of a modern auditing system or otherwise, so as to enable the Commission to discharge its responsibilities under the provisions of this Act. ••TIGH 8. Sufficiency of the "Exchange Standard Fund*: If at any time and for any reason it should become apparent that the amount of the "Exchange Standard Fund" is not sufficient to maintain the parity of the peso, the President of the Republic may, and he is hereby authorised to, issue and sell certificates of Indebtedness in an amount whioh, when the proceeds of the sale are added to the Fund, will be adequate to maintain the parity of the peso. Such certificates of Indebtedness shall be the full and unrestricted obligations of the Republic of Cuba, exempt both as to prinolpal and interest from all taxes now or hereinafter Imposed by the National, Provincial and Municipal Governments. As the public Interest permits, and always pro- vided that the Fund may not be reduced below the amounts stipulated in Article 5 of this Aot, the Commission may, upon the request of the President of the Republic, dlreot the payment from the Fund of prinolpal and/or interest of all or any part of the certificates of Indebtedness at any time outstanding. [ARTICLE 9. Surplus Accumulations in the Fund; The "Exchange Standard Fund" shall be lnoreased through the additions provided for In -10Article! 5, 14, and 17 of this Aot until the amount of the Fund represented by United States ourrenoy and United States dollar deposits i s equal to forty-fire peroent of all ourrenoy notes and/or subsidiary and Minor ooins in circulation and available for circulation up to and including $37,000,000, and fifty-fire peroent of a l l ourrenoy notes and/or subsidiary and ainor oolns in circulation and available for circulation when the aggregate of euoh ourrenoy notes and/or subsidiary and Minor ooins in circulation and available for circulation amounts to gore th/Sn $37,000,000 but not more than $75,000,000. Such United States ourrenoy and United States dollar deposits shall be lnoreased by one dollar for eaoh lnereass ef one peso in ourrenoy notee and/or ibsidiary and Minor oolns in circulation and available for circulation in excess of $75,000,000. Any surplus which may exist or may accumulate in the Pund in excess of the amounts stipulated in this Article, May be transferred in whole or in part to the general fund of the national Treasury upon the recommendation of the Currency Commission and the approval of the President of the Republic, provided, however, that no such existing or accumulated surplus May be so transferred while the aggregate amount of ourrenoy notes and/or subsidiary and Minor oolns in circulation or available for circulation i s l e s s than 117.000.000, When the aggregate amount of ourrenoy notes and/or subsidiary and minor coins in circulation or available for circulation i s 117.000.000 or more, any surplus existing in such "Exchange Standard fund" may be transferred, in whole or in part, to the general funds of the Treasury in accordance with the following stipulations: a). If the aggregate amount of sueh ourrenoy notee and/or subsidiary and Minor oolns in circulation or available for circulation, i s $17,000,000 or more, but not More than $37,000,000, then an amount not to exoeed $2,500,000 May be transferred from any such surplus. b). If the aggregate amount of such ourrenoy notes and/or subsidiary and Minor coins in circulation or available for circulation i s $37,000,001 or more, but not more than $57,000,000, then an additional $2,500,000 may be 80 transforrtA from anv •nwh ininiMi o). I If the aggregate amount of such currency notes and/or tubeidiary and Minor oolne la circulation or available for circulation i s $57*000,001 or aero, but not more than $75,000,000, then euoh an additional amount nay be transferred ae will leave the aggregate amount of suoh United Statee currency and United States dollar deposite not l e s s than fifty-five percent of the aggregate of such currency notes and/or subsidiary and •inor coins in circulation and available for circulation. In calculating the foregoing amounts and percentage*, the I prooeeds of the sale of outstanding certificates of Indebtedness shall not be included as a part of the rund, and no surplus shall be so transferred while any certificates of indebtedness are outstanding. ART I OH 1&. Accounts and Records o£ £&& "Exohange Standard Fund": Such accounts and records of tht "Exchange Standard Fund11 shall be kept as will show at a l l times, among other things, the following; a). Unissued eno Notes. These notes shall Include new notes which have never been Issued and notes which have been Issued but which have been redeemed. Such notes shall not be considered a part of the money in circulation or available for circulation mm til such time as they may be paid out in connection with the transactions contemplated in Article 4 paragraphs (a) and (b), provided, however, that such notes may be used in making exchanges, pesos for peso, of notes fit for circulation for notes which, because of their soiled, worn or torn condition, are no longer fit for circulation. Suoh notes unfit for circulation shall be treated for accounting purposes exactly as though they were unissued or redeemed notes, until suoh time as they are destroyed in accordance with rules and regulations to be approved by the Commission, fi lnor Joint. These coins shall b)* Unissued Subsidiary Include new coins whici ave never been Issued and also coins which have been Issued but which have been re* deemed, Suoh coins shall not be considered a part of the money in circulation or available for circulation until suoh time as they may be paid out In connection with the transactions contemplated in Article 4 paragraphs (a) and (b) provided, however, such coins may be used in making exchanges for currency notes and other coins where suoh exchanges are required for the convenience of trade and commerce. The notes and coins received as a result of such exchanges shall be treated as unissued or redeemed notes and coins. k0 money y P? y S &1 United states 2S 2S Hand, All such d f i i l shall be accounted for in a special aooount in h ""Exchange Standard Fund" and shall be included as the a part of the reserves provided for in Artlole 5 of this Act, •X2- aocount in the *Sxchange Standard Fund" and shall be in* eluded aa a part of the reserves provided for in Artlolr 5 of thia Act, • Other funds on Hand, . yulllon on Bajffl t*$ Coinage Purposes. g ) . Profit a change 31 Losses floa the Operations of the JJ Operationa ARTICLI 11, ift a n d K*<»*<1« &£ M l M Meoeiaarv j& DetaTl tSeAaaata, Llabilltlea and Denominations of and Regulations Regarding Ourrsncv notsat The Commission ehall cause adequate auppliee of currency notes t s be engraved and printed by houaea or establishments expert in doing auoh work. The Commission i s hereby authorised to cause to be engraved and printed currenoy notes in any or a l l of the following denominationai one peso, five pesos, ten peaoa, twenty pesoat fifty pesos t one hundred peeoe9 five hundred pesoa9 one thousand pesos and five thousand pesos. All dies and plate a shall be safe- guarded and kept with the same degree of control and caution as unissued ourrenoy notes* The Commission shall issue such regulations aa i t may con* aider necessary with respect to the manner of engraving, printing, handling and accounting for ourrenoy notea. The currency notea shall contain a legend to the effect that they are the full and unrestricted obligations of the Republic of 0uba9 that upon demand they will be redeemed in accordance with the provisions of Article 4 of this Act, and that the holders of such notes have a firat and paramount l i s a upon a l l the assets in the "Exchange Standard Fund", IS* auoaidlarv and Minor Coinage i The subsidiary and minor ooins in the republic shall be those now provided for by law. On and after the effective date of this Act the coinage, issuance and redemption of Cuban subsidiary and minor coins shall be under the direction and control of the Currency Ooajnisslj •13- It shall be the duty of the Currency Commission to provide an adequate supply of subsidiary and minor oolns to meet the needs of trade and commerce. On demand, the Currency Commission shall exchange currency notes for subsidiary and minor ooins when such coins are presented in amounts of one hundred pesos or multiples thereof* ARTICLE 13, The Reports o£ the Commission: The Commission shall issue weekly statements available for publication in the public press, showing the condition of the •Exchange Standard fund11! and showing particularly the amount of reserves in United States currency and United States dollar deposits in comparison with the total amount of currency notes and/or subsidiary and minor coins in circulation and available for circulation. As of June 50th and December 31st of eaoh year, the Commission shall prepare and make available for publication a report to the President of the Republic in which it shall set forth in detail the condition of the "Exchange Standard Fund", the operations which have taken place through the Fund during the preceding six months and the income, expenses, profits, and losses of the Fund during that period. ARTICLE 14* Fund*: Disposition of Silver pesos Receive^ JLg, the "Exchange standard All silver certificates received in the "Exchange Standard Fund" shall be promptly exchanged for silver pesos. All silver pesos in the Fund or received In the Fund shall, in amounts of £100.000, or multiples thereof, be melted down by the Commission and the bullion sold In the open market. The proceeds of such sale shall be deposited with the depositories of the "Exchange Standard Fund" in the United states of America and shall constitute a part of the reserves provided for in Article 5 of thl3 Act. -14- ARTICLE l£ # Sale of Telegraphlo Transfers and Demand Drafts: The . ' ComnltsIon is authorised to sell telegraphic tranefere and demand drafte upon Provincial Treasurers, charging such commission therefor as the Commission may determine. Provincial Treasurers are hereby authorised and directed to act as agents of the Commission under such terns and conditions as the Commission may determine, ARTICLE 16, Keserves £f Banks Operating within the Kapubllo; All banks operating within the Republic and receiving deposits within the Republic shall, beginning with the effective date of thie aeJtg maintain with respect to all deposits made within or payable within the Republic a reserve In Cuban currency or ooins by this Act made legal tender equal to not less than twenty percent of all suoh deposits payable upon demand or within thirty days and seven percent of all such deposits in savings account and such deposits payable after thirty days. This reserve shall be maintained in Cuban currency or coins by this Act made legal tender irrespective of the currency in which the deposits were made or are payable* In calculating such reserve there shall be deducted from balanoes due to other banks balances due from other banks in an amount up to, but not exceeding, such balanoes due to other banks, and there shall not be included in such deposits balances due to head offices and branches located outside the republic of Cuba. Not more than ten percent of the reserve may consist of subsidiary and minor coins, and not less than two-thirds of such reserve shall at all time consist of currency notes* The provisions of this Article shall apply to the Bank of Cuba, except Insofar as they may be in conflict with the provisions of the Act creating such bank, In which case the provisions of the latter Aot shall prevail. -15LRTICLg 17, Penalty Provieion: Any person guilty of counterfeiting or participating in the counterfeiting of currency notes, silver certificates or coins or circulating or aiding in any Banner the circulation of such counterfeit currency notes silver certificates or coins shall be punished by a fine of not to exceed 110,000 or by imprisonment for a tern of not to exceed ten years or by both such fine and imprisonment In the discretion of the court. Any person guilty of making or participating in the making of false entries in any record, book or account of the "Kxohange Standard Fund", and any person guilty of theft or embesxlement or participating in the theft or embessleaent of any funds or assets In the "Exchange Standard Fund", shall be punished by a fine of not to exceed 10,000 or by imprisonment for a tern of not to exceed ttn years or by both such fine and imprisonment in the discretion of the court. Any person guilty of giving false information or participating in the giving of false information to the publio with respect to the true condition and operations of the "Cxohange Standard fund* shall be punished by a fine of not to exoeed $5,000 or by imprison* ment for a term of not to exoeed fire years or by both such fine and imprisonment in the discretion of the oourt. Any bank which does not maintain the reserves against Its deposit l i a b i l i t i e s as required under the provisions of Article 16 of this 4#%| shall be fined five hundred pesos for each day that such reserves are deficient. The Commission i s hereby authorised to obtain the receeeery reports fro* suoh banks showing their reserve position at the olose of business each day, and the Commission i s hereby authorised and direoted to impose and collect the fine provided herein for defioient reserves, and the proceeds of such fines shall be included as a part of the income of the "Exchange Standard Fund** -16- ARTICLE 18> repeal irovlelon: nil acts or parts oi* acts in conflict with the provisions of t h i s Act <*xe hereby declared to be of no force and effect insofar as the provisions of t h i s Act are concerned* ARTICLE 19. Jhe rffectlve Date of this Act. effect on date. Thia Act shall take
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