Japanese invasion money

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Japanese Invasion Money, officially known as Southern Development Bank Notes, was currency issued by the Japanese Military Authority, in lieu of and in replacement of local currency after the conquest and subjugation of a nation-state in World War II. In February 1942 in Japan, laws were passed establishing the Wartime Finance Bank and the Southern Development Bank. Both institutions issued bonds to raise funds. The former loaned money primarily to military industries, but also to a wide range of other ventures, including hydroelectric generators, electric power companies, shipbuilding and petroleum. The latter provided financial services in areas occupied by the Japanese military, and Southern Development Bank notes were in fact used as de facto military scrip. In December 1942, the outstanding balance of Southern Development Bank notes stood at >470 million; in March 1945, >13 billion. [1]

In August 1940, Japanese Prime Minister Matsuoka Yôsuke announced the idea of the Greater East Asia Co-Prosperity Sphere. The Japanese envisioned the Co-Prosperity Sphere to be an autarkic bloc of Asian nations led by the Japanese and free of Western powers; "Asia for Asians". As Japan occupied various Asian countries, they set up governments with local leaders who proclaimed independence from the Western powers. [2]

Beginning with the capture of the Philippines the Japanese Military would confiscate all hard currency, both on a federal and individual level, and replace it with notes printed locally and bearing a proclamation of military issue. All notes bear the name of the issuer, “The Japanese Government” while some notes proclaim the “promises to pay the bearer on demand…” This money, called “Mickey Mouse Money” by local Filipinos [3] was considered valueless after the overthrow of the Japanese as literally tons of it was burned. Additionally, Japanese troops were ordered to destroy bank records and any remaining currency prior to capitulation. [4]

By the end of World War II, the Co-Prosperity Sphere where Invasion Monies were issued included the Philippines, Burma (now Myanmar), Malaysia (formerly Malaya), the Dutch East Indies (now Indonesia and consisting of Sumatra, Java, Madura, Southern Borneo, Celebes, western New Guinea and the Moluccas) and Oceania (consisting of British New Guinea and the Solomon and Gilbert islands) with the hopes of the eventual conquest of Australia and outlaying territories.

Contents 1 The Philippines 2 Malaysia 3 Burma 4 Dutch (or Netherland) East Indies 5 Oceania 6 Mexico 7 Propaganda notes 8 Counterfeit notes 9 Aftermath 10 References and Notes

[edit] The Philippines

On 10 December, 1941 Japanese troops landed on Luzon. The Japanese overran Manila on 2 January, 1942, and in the process captured more than $20.5 Million in U.S. and local cash and an unknown amount of foreign currency and bullion in that capital city. [5] The Japanese used this hard currency abroad to purchase raw materials, rice and weapons to fuel and feed its war machine. In its place the Japanese issued several series of invasion notes. The first issue in 1942 consisted of denominations of 1, 5, 10 and 50 centavos and 1, 5, and 10 Pesos. 1943 brought “replacement notes” of the 1, 5 and 10 Pesos while 1944 ushered in a 100 Peso note and soon after an inflationary 500 Pesos note. Near the end of the war in 1945 the Japanese issued a 1,000 Pesos note. Plates for this note were first completed in Manila shortly before U.S. troops entered the city on 3 February, 1945. The Japanese were literally printing the 1,000 Pesos note while on the run and did so during their retreat from Manila to Baguio. The Japanese were on the defensive and short of supplies, including printer’s ink, which they diluted with duplicator fluid in an effort to stretch their stores. [6] There is a U.S. collector that claims to have an original Philippines pattern coin manufactured during the Japanese occupation of the Philippines at the Osaka mint, similar to the recently verified Malaysian pattern coin that was minted there and discussed below. The coin has the familiar Japanese sun rays shining up from the horizon.

[edit] Malaysia

The Japanese began their attack on British Malaya the same day as Pearl Harbor. The Japanese entered Malaya overland from the north and the fortified base of Singapore fell on 15 February, 1942 and was held with the rest of Malaya by the Japanese until August 1945. Malaysian script is in dollars (Straits or Malayan dollars) and therefore is often, mistakenly, thought to be for the invasion of the United States. In 1942 the Japanese issued paper script currency of 1, 5, 10 and 50 cents and 1, 5 and 10 dollars. The 1, 5 and 10 dollar notes initially had serial numbers; these were later omitted. In 1944, inflation lead to the issuing of a 100 dollar note. In 1945, a replacement note 100 dollar bill was issued as well as a hyper-inflation 1,000 note. The 1942 series of notes, including the 50c and 1, 5, 10, and the 1944/45 100 dollar all contained the text [The Japanese Government] “Promise To Pay The Bearer On Demand”. Interestingly, the 1944 100 dollar replacement note no longer contained this message.

With metals being a needed war-material the Japanese did not issue any coinage during their occupations. All occupation currency, including denominations of less than one dollar, was printed on paper. However, the [Money Museum of the Bank Negara Malaysia] in Kuala Lumpur has on display a pattern coin clearly proving that occupation coinage was considered. The pattern on display is a 20 cent aluminum pattern coin inscribed on the obverse with the name MALAYSIA, and the date 2602, which translated from the Japanese calendar is 1942 A.D. Inscribed on the reverse is a typical Japanese design of a sun ray with sakura flowers, with 20 CENTS at the top.

It is interesting that the name MALAYSIA was used on a pattern coin of 1942, given that the name for this country was not changed from MALAYA to MALAYSIA until 16 September, 1963. However, that name had actually been in common use since the 19th Century. Mr. Saran Singh of the Malaysian Numismatic Society received verification from the Osaka Finance Ministry, Japan, that this pattern coin had indeed been minted at the Osaka Mint, and that the name MALAYSIA was the Japanese name for that region, at that time. [7]

[edit] Burma

The Japanese invaded Burma in January 1942. They conquered Mandalay on 21 May, 1942 forcing the British to retreat into India. The Japanese held Burma until the second Allied campaign of 1944; although an official surrender did not take place until August 1945. In 1942 the Japanese issued paper script currency of 1, 5 and 10 cents and ¼, ½, 1, 5 and 10 Rupees.

In 1943, the Japanese commuted the sentence of Dr. Ba Maw, an outspoken advocate for Burmese self-rule, and installed him as the head of the puppet government. From 1943 onward the Japanese issued paper script currency of 1, 5 and 10 Rupee with a 100 Rupee note in 1944. The native characters at the top of each note read “Burma State”.

[edit] Dutch (or Netherland) East Indies

After the fall of Singapore in February 1942, the Japanese attacked the Netherland Indies which were effectively overtaken by 9 March, 1942 and held until surrender in August 1945. In 1942, the Japanese issued paper script currency of 1, 5 and 10 cents and ½, 1, 5 and 10 Gulden notes. What makes these notes unique are that they are written entirely in Dutch. Values are Een (1), Vijf (5) and Tien(10) cents and Guldens. All of these notes bear the following “De Japansche Regeering Betaalt Aan Toonder” or “The Japanese Government Promise To Pay The Bearer On Demand”. Denominations of 100 and 1000 Roepiah were issued in 1944, with the Indonesian legend "Pemerintah Dai Nippon" (Japanese Government). An additional series, with denominations of 1/2, 1, 5, 10 and 100 Roepiah, was also issued in 1944 with the transliterated Japanese legend "Dai Nippon Teikoku Seiku" (Imperial Japanese Government).

[edit] Oceania

Oceania refers to British New Guinea, the Solomon and Gilbert Islands and other small island outposts. For the Japanese these islands were as mush a defensive position for the larger islands within the Co-Prosperity Sphere as they were a potential jumping off point for the eventual conquest of Australia. In 1942 the Japanese issued paper script currency of a ½, 1 and 10 Shilling note and a 1 Pound note. The Japanese inability to mount an attack against Australia mitigated the need for larger denomination notes.

[edit] Mexico

The Japanese Government issued similar currency in connection with a proposed invasion of Mexico—five-peso notes. Oddly, these notes were printed in the English language although it was known, of course, that the common language in Mexico is Spanish.

[edit] Propaganda notes

The United States prepared a propaganda parody of the 5 rupee banknote issued for use in Burma from 1942 to 1944. The original note is dark purple with a yellow background. The American propaganda parody is similar on the front. The back bears two propaganda messages in the Kachin (a Burmese warrior tribe) language. It reads: “The Japanese Military Government commanded their troops in Burma to keep the following directives secret. The Military Government is issuing currency notes for your [the Japanese] use in Burma. Spend as much as you like for food and other things, but don't tell the (Kachin) people the secret of the money. Kachin! The Japanese are making these valueless notes for your use. It is easy to get these notes but very hard to buy food or other things. Avoid these notes or you will be cheated.” [8]

[edit] Counterfeit notes

The United States counterfeited numerous notes throughout the war in part to destabilize the local economy, thereby demoralizing the Japanese, and to supply guerillas fighting the Japanese. General McArthur asked the Office of Strategic Services (OSS) to replicate the Japanese currency in the Philippines for his eventual return. By luck, a supply of paper made from plants native to Japan was located in the United States. [9] When that supply was exhausted the counterfeiting operation was transferred to Australia. In 1943 MacArthur requested and received the following counterfeited notes; five million 10-Peso notes, three million 5-Peso notes, one and a half million 1-Peso notes and five hundred thousand 50 centavo notes. [10]

Counterfeit Japanese Invasion Money was produced by the Commonwealth Bank of Australia (CBA). Recently discovered correspondence from the Netherlands Indies Commission to the Governor, Commonwealth Bank of Australia, on 5 October, 1942 shows a request of nearly 70,000 pieces of counterfeit script in varying denominations. A follow-up letter three months later shows a further request for another 70,000 pieces of counterfeit script as the previous supply “…proved to be very useful” and was exhausted. [11]

[edit] Aftermath

After WWII, an organization called "The Japanese War Notes Claimants Association of the Philippines, Inc." (JAPWANCAP) was founded on 8 January 1953. Its purpose was to pressure the Philippine and U.S. governments to redeem or to pay a fraction of the value of the Japanese military issues of currency for the Philippines. The Association held the notes, issued membership certificates, official ID cards and deposit pass books. These certificates were issued for a fee. [12] Not even the Filipino legislature was interested in pursuing the matter and nothing came of it. In 1967, JAPWANCAP unsuccessfully sued the United States government for reciprocity and lost. Court battles against Japan have raged up until recently with cases going to Japans highest courts. To date, no person issued Japanese Invasion money in place of their own money has been awarded compensation. Pursuant to the Treaty of San Francisco signed September 1951 Japan made restitution on a federal, not individual, level.

[edit] References and Notes

[1] http://www.imes.boj.or.jp/cm/english_htmls/feature_gra3-6.htm
[2] http://wgordon.web.wesleyan.edu/papers/coprospr.htm
[3] Arlie Slabaugh, Japanese Invasion Money by Hewitt’s Numismatic Information Series (Chicago Press, 1967)
[4] ibid
[6] Arlie Slabaugh, Japanese Invasion Money by Hewitt’s Numismatic Information Series (Chicago Press, 1967)
[7] http://davidklinger.blogspot.com/2006/03/japanese-occupation-pattern-coin.html
[8] http://www.psywarrior.com/WWIIAlliedBanknotes.html
[9] Arlie Slabaugh, Japanese Invasion Money by Hewitt’s Numismatic Information Series (Chicago Press, 1967)
[10] http://www.psywarrior.com/WWIIAlliedBanknotes.html
[11] http://davidklinger.blogspot.com/2006/06/counterfeit-jim.html
[12] http://www.papermoneyworld.net/gramsarc/gramsview.asp?key=986
[13] http://www.japaneseinvasionmoney.com