The PESO also sometimes called PESO FUERTE eventually succeeded the REAL as the monetary unit of Mexico and other portions of Spanish America. From the beginning of the Spanish regime in the Philippines, the silver coins of Mexico were the principal monetary    medium used in the Philippines.  These silver coins continued to be the principal monetary medium of the  Philippines even after Mexico achieved its independence from Spain.  By 1877, the Mexican silver peso had become so firmly established in the  Philippines as the monetary medium of commerce that all attempts to substitute the coinage of Spain for the silver peso were futile.  Apparently the silver PESO was not made the official monetary unit of the  Philippines until 1897.  The Royal Decree of April 17, 1897, created “for the Philippines a special money with the denomination of one peso of  dimensions and law (legal specifications) identical to those of the money of five pesetas.  This money shall circulate in the Philippines from the date of publication of this decree in the Gaceta de  Manila”.  This decree was published in the Gaceta de Manila on May 26, 1897.  In  accordance with this decree special silver pesos were coined for the Philippines.

While no decree prior to that of April 17, 1897, has been found which fixed the PESO as the monetary unit of the Philippines, it is nevertheless a fact that the denominations were expressed in terms of the PESO: on all Philippine stamped paper issued subsequent to  December 31, 1877; on Philippine Derechos de Firma stamps issued prior to 1868, and on all issues beginning with and subsequent to the issue of 1878; on Philippine Derechos de Firma stamps of 1882; on all Philippine GIRO stamps, beginning with the first issue of 1880; on all Philippine Recibos y Cuentas stamps, beginning with the first issue of 1879; on all Philippine Pasaportes, Recargo de Cedulas Personales, Recargo de Consumos, Timbre Movil (Sello), and Timbre Movil Especial stamps which were issued subsequent to December 31, 1877.

The REAL DE PLATA or REAL FUERTE which was the monetary unit of Spanish America and of the Philippines for more than two hundred years subsequent to 1640, should not be confused with the REAL DE VELLON, the monetary unit of Spain during the same periods.  One Real de Plata was equal to 2.5 Reales de Vellon.  Each Real de Vellon was equal to 34 MARAVEDISES. The writer has seen in the Philippines a number of unused specimens of Papel Sellado issued between 1540 and 1840 whose denominations are expressed MARAVEDISES. The writer believes that such stamped paper was issued for use only in Spain. The denominations of Philippine stamped paper and adhesive revenue stamps were never expressed in terms of the REAL DE VELLON.

UNDER THE UNITED STATES DOMINION

When the United States Military Forces occupied Manila on August 13, 1898, the PESO     (Mexican Currency) was the monetary unit of the Philippines. Subsequent to the American  occupation of Manila, the value of the PESO in terms of the Dollar declined until in 1904, one US Dollar was equal to about 2.7 PESOS (Mexican Currency).  The unstable condition of Philippine currency caused the early American officials to devise a new currency system which tied the Philippine PESO to the US Dollar and made the Philippine Peso equal to exactly one half dollar. 

The new Philippine monetary unit was called the PESO CONANT and was subdivided into 100 centavos. The Act of Congress creating the new monetary   system was approved in 1903 but it was not until about the end of January 1905, that all of the old currency was retired from circulation.  The Government encountered considerable  opposition from the banks and business firms to its effort to buy up and retire from  circulation all of the old currency.  A law was enacted requiring that beginning January 1, 1904, all taxes must be paid in the new  currency and in October, 1904, the Philippine  Commission enacted a law which imposed a tax which was increased each successive month thereafter, upon all transactions in the old currency.  The effect of this progressive tax was to drive the remainder of the old currency out of circulation by about the end of January 1905. 

The denominations of all Philippine revenue stamps, except CUSTOMS stamps issuedbetween August 20, 1898, and December 31, 1904, were expressed in terms of the PESO  (Mexican Currency).  Philippine revenue stamps and stamped paper, except  CUSTOMS stamps issued  subsequent to December 31, 1904, were expressed in terms of the PESO CONANT. The Philippine Customs stamps issued prior to April 18, 1902, were provisional stamps overprinted CUSTOMS whose denominations were expressed in terms of the Peso (Mexican Currency). The denominations of all Philippine Customs stamps issued    between April 18, 1902, and the end of September 1917, were expressed in terms of the Dollar.  The denominations of all Philippine Customs stamps issued since the 1st of October 1917, have been expressed in terms of the PESO CONANT.