This study gives a deep insight on what takes place when a certain monetary measure is enforced by the Central Bank to the banking sector or other sectors. It covers the point of effectivity with regard to the use of the measures adapted by the monetary authorities in regulating money supply in the economy. The monetary measures cited in this thesis are those implemented by the Central Bank of the Philippines from the start of its operations in January 3, 1949 up to December 31, 1973. Although there are other measures and policies affecting money supply such as the fiscal policies, this thesis is centered mainly on monetary measures.