The 1940 Cebu City bonds for sewerage

The city’s sewerage was already an issue during the first year of its cityhood. To understand the mindset of our city administrators in its infancy, let us examine how ambitious and serious they were on the sewerage system of the city.

Just like any project, the ever-present issue has always been funding. This was how they attempted to solve the problem. They asked the permission of the national government for the issuance of a bond. To thoroughly understand, the presidential grant is published as reproduced:

“Administrative Order No.125

Order of Issue

City of Cebu, Thirty-Year 4-1/2% Bonds

WHEREAS, the City Council of Cebu, on the 1st day of November, 1938, by Resolution No. 1057, series of 1938, duly adopted and approved by the said City Council, requested the issue and sale of bonds in the amount of THREE HUNDRED AND FIFTY THOUSAND PESOS (P350,000) under the provisions of Section 1 of Commonwealth Act No. 357 for the purpose of raising funds for the construction of the necessary sewer facilities in the said City;

NOW, THEREFORE, pursuant to the provisions of Commonwealth Act No. 337 abovementioned, I, MANUEL L. QUEZON, President of the Philippines in the name and on behalf of the Commonwealth of the Philippines, hereby authorize the issuance of, and by these presents do issue, for sale in the Philippines at public auction at not below par, National Government bonds in the amount of THREE HUNDRED AND FIFTY THOUSAND PESOS, for the construction of the necessary sewer facilities in the said City of Cebu, said bonds to bear the date of May 1, 1940 payable thirty years after said date, with interest at the rate of 4-1/2% per annum, payable semi-annually. The bonds shall be in the denomination of P50.00 or a multiple thereof, and may be coupon bonds or registered bonds, and shall be registered in the Treasury of the Philippines at Manila, where the principal and interest shall be payable in Philippine Currency or its equivalent in United States Currency in the discretion of the Secretary of Finance.

DONE in the City of Manila, this 25th day of April, in the year Of Our Lord, nineteen hundred and forty, and of the Commonwealth of the Philippines.

Manuel L. Quezon

President of the Philippines

By the President:

Jorge B. Vargas

Secretary to the President”