Guerilla Currency Met the Needs of Local Citizens, U.S. Troops and Their Philippine Allies in World War II

Numerous World War II veterans who spent time in the Philippines came home with unusual mementoes and souvenirs known as Philippine Guerilla Currency. Chances are that if you never served in the Philippines and not a currency collector, you probably didn't know this strange, often crudely made, "money" existed.

These special paper notes, sometimes crudely made, were used by American troops who remained in the hills as guerilla and resistance fighters against the Japanese, and by local citizens as well.

While researching material for one of my four World War II books, this writer had the fortunate opportunity to meet and interview a number of veterans and former Philippine residents who had direct knowledge of this wartime emergency currency.

Legally authorized and printed in the Philippines during the Japanese occupation between 1941-45, Guerilla Currency notes were produced in nine denominations: 5, 10, 20, 30 and 50 Centavos, and larger denominations of 2, 5, 10 and 20-pesos.

On January 2, 1942, the invading Japanese occupied the Treasury Building in Manila and captured almost $20.5-million worth of paper Peso currency, U.S., and an unknown amount of foreign currency. At the same time millions of dollars in coin and gold and silver bullion fell into enemy hands.

Despite that, considerably more currency existed in municipalities and provinces outside Manila, and it was gathered up and destroyed before the Japanese could get to it.

When President Quezon fled from Manila to General Douglas MacArthur's headquarters on Corregidor he created the first local Currency Committees, authorized create and print emergency occupation currency. Additional committees were eventually authorized and formed throughout the occupied country, and, as a result, came in a wide variety of designs. The notes they issued were done with the expectation and promise that they would be redeemed by a specific date after Japan was defeated and the Allies won the war. Any notes not redeemed by the deadline were devalued and useless.