o the extent of 6,000,000
pesos' worth in 10-peso notes; another 6,000,000 pesos in 5-peso notes,
and 3,000,000 pesos in 2-peso notes, these last bearing a vignette
of the Philippine patriot, the late Dr. Jose Rizal. On December 23,
1903, the Governor reported that "not till January 1, 1904, can the
Mexican coin be demonetized and denied as legal tender value." A
proclamation, dated January 28, 1904, was issued by the Insular
Treasury in Spanish and Tagalog to the effect (1) that after October 1,
1904, the Government would only accept Mexican or Philippine pesos at
the value of their silver contents, and (2) that after December 31,
1904, a tax would be levied on all deposits made at the banks of the
above-mentioned coinage. Notwithstanding the publication of numerous
official circulars urging the use of the new peso, the Mexican and
Spanish-Philippine dollars remained in free circulation during the
first six months of 1904, although rent and certain other payments
were reckoned in "Conant" and current accounts at banks were kept in
the new currency, unless otherwise agreed. Naturally, as long as the
seller was willing to accept Mexican for his goods, the buyer was only
too pleased to pay in that medium, because if, for instance, he had to
pay 10 Mexican dollars, and only had "Conant" in his pocket, he could
call at any of the hundred exchange shops about town, change his 10
"Conant" into Mexican at a 5 to 20 per cent. premium, settle his bill,
and reserve the premium. Almost any Far Eastern fractional coins served
as subsidiary coins to the Mexican or Spanish-Philippine peso, and
during nine or ten months there were no less than three currencies
in use--namely, United States, Mexican (with Spanish-Philippine),
and "Conant." It was not practicable to deny a legal-tender value
to so much Mexican, and Spanish-Philippine coin in circulation. The
retailer was required to exhibit in his shop a card, supplied by the
municipality, indicating the exchange-rate of the day, and declaring in
Spanish, English, and Tagalog as follows: "Our prices are in American
currency. We accept Philippine currency at the rate of..."; but the
reckoning in small-value transactions was so bewildering that, in
practice, he would accept any coinage the purchaser chose to give him
at face value. From August 1, 1904, when the "Internal Revenue Law"
(_vide_ p. 630) came into operation, merchants' and bankers' accounts
and all large transactions were settl