G.R. No. L-3962
THE UNITED STATES, plaintiff-appellee, vs. LING SU FAN, defendant-appellant.
February 10, 1908

FACTS:
Defendant Ling Su Fan, a supercargo on the steamship Taming, was accused of attempting to export Philippine silver coins from the Philippine Islands to Hongkong, contrary to Act No. 1411 of the Philippine Commission. On December 12, 1906, P20,600 in Philippine silver coins were found concealed in his stateroom on the steamship Taming, which was cleared and ready to sail for Hongkong. The coins were not manifested.

Ling Su Fan demurred to the complaint, arguing that the facts charged did not constitute a public offense and that Act No. 1411 was contrary to the 14th Amendment of the U.S. Constitution and Section 5 of the Act of Congress of July 1, 1902. The lower court overruled the demurrer.

During the trial, the defendant claimed he had brought the money from Hongkong to Manila for a Chinese owner to purchase Mexican and Spanish-Filipino silver coins but decided to return them due to unfavorable exchange rates. He presented an unverified insurance policy and witnesses to corroborate his story. The lower court found his defense incredible, noting his initial conflicting statements to customs officials and the unreasonableness of his explanation, especially given that the bullion value of Philippine silver coins was approximately 9% higher than their face value. The trial court found him guilty and sentenced him to sixty days imprisonment and a fine.

ISSUE:
1. Did the Philippine Commission have the power to enact Act No. 1411, prohibiting the exportation of Philippine silver coins, thereby making the law valid?
2. Was the evidence presented sufficient to establish the defendant’s guilt beyond a reasonable doubt?

RULING:
The Supreme Court affirmed the decision of the lower court.

1. Yes, Act No. 1411 is valid. The Court held that the Philippine Commission possessed full power and authority to enact Act No. 1411. This power was expressly granted by Section 8 of the Act of Congress of March 2, 1903, which authorized the Philippine government to “coin money and to issue currency… and prohibit the exportation of the same.” Furthermore, the Court reiterated its ruling in Gaspar vs. Molina that the Philippine Commission has general legislative powers, and its laws are valid unless prohibited by an act of Congress, the U.S. Constitution, or a treaty. Regulating and controlling its own money is a legitimate exercise of the state’s police power. Therefore, the lower court committed no error in overruling the demurrer.

2. Yes, the evidence was sufficient to prove guilt. The Court found that the evidence adduced during the trial was sufficient to justify the lower court’s findings of fact and conclusions. The defendant’s conflicting statements to authorities, the lack of a manifest for the large sum of money, the unreasonableness of his defense (bringing coins to Manila only to take them back to Hongkong), and the higher bullion value of the coins all pointed to an intent to illegally export them. The Court also found the testimony of the defense witnesses and the presented insurance policy to be lacking credibility and probative value.