President Osmeña’s order to rebuild the nation from war (Part 1)

President Sergio Suico Osmeña Sr., the first Cebuano to become vice president, was sworn in as president of the Philippines on August 1, 1944 on the day President Manuel L. Quezon died. President Osmeña came back to the Philippines on October 20, 1944 together with his friend, General Douglas MacArthur, and fulfilled the famous promise: “I SHALL RETURN.”

President Osmeña believed that it was essential that the financial and monetary structure of the Commonwealth of the Philippines (established in 1935 with their election on September 16, 1935) be maintained on a sound basis.

President Osmeña then issued Executive Order No. 25 dated November 18, 1944 promulgating the rule concerning currency, books and accounts, and debt moratorium for all areas free from enemy occupation and control throughout the Philippines.

As far as currency is concerned:

1.) The new Victory Series of Philippine Treasury Certificates (Victory Pesos) and the Philippine coins identical to pre-war issue now in circulation will be legal tender.

2.) All pre-war Philippine Treasury Certificates and coins will continue to be legal tender and may be exchanged at par for the Victory Pesos if so desired by the holders.

3.) The rate of exchange will be two Victory Pesos for one United States dollar. Transactions at any other rate are prohibited.

4.) For each province liberated from the enemy, an Emergency Currency Committee will be appointed by the United States Army and the Commonwealth Government to study, investigate and report on the bona-fide emergency currencies issued by duly authorized currency boards. The Committee will ascertain the extent of the authority given to such boards, the amount of emergency currency actually printed and issued, and will recommend as soon as possible the redemption of the currencies found to be legally issued. In case it is found out that the in a given province more emergency currencies were in circulation than the amount actually authorized to be issued, the Committee will recommend what action shall be taken; Provided, however, that counterfeit emergency currencies will not be redeemed.” (To be continued)