America early decided to make the currency system more stable and scientific. On March 2, 1903, Congress passed the Philippine Coinage Act which established the conant or Philippine peso as the official coin of the Islands. The effect of this Act was to drive away all the previous coins in circulation, and it is the basis of the present currency system in the Philippine Islands. The coins provided for were of the denomination of the peso, half-peso, peseta, media peseta, 5 centavos, 1 centavo, and one-half centavo, while the silver certificates were in the denominations of P2, P5, P10, P20, P50, P100, P500. The peso was issued on the basis of two Philippine pesos (P2) to one dollar ($1) gold, United States currency. To maintain the parity the Gold Standard Act was passed by the Philippine Commission in October, 1903. There are gold deposits in the banks of the United States to guarantee every Philippine Government certificate in circulation. This places the Philippines practically on an actual gold basis. [Notes] The notes in circulation at the time the Americans came were those issued by the Banco Español-Filipino. They were in 10, 25, 50, 100, and 200 Mexican denominations. After the introduction of the Philippine peso, P1 notes were also allowed to circulate. In 1912, this same Banco Español was allowed to change its name to that of the Bank of the Philippine Islands, and thereafter, a new series of notes were issued, having the same size as the certificates issued by the Philippine Government, but of the denominations of P5, P10, P20, P50, P100, and P200. When the Philippine National Bank was established in 1916, it was authorized to issue notes to be known as circulating notes. In accordance with this authorization, denominations of P1, P2, P5, and P10 began to appear. The stability of the currency system in the Philippines depends solely on the maintenance of the parity of the Philippine peso with the gold dollar on the established basis of 2 to 1. This can be easily accomplished by keeping always intact the gold deposits in the United States. TABLE OF CURRENCY IN CIRCULATION, 1913-1922