Millions in Silver Coins Dumped in Manila Bay to Keep it from the Japanese

Prior to being ordered by President Franklin D. Roosevelt to depart from Corregidor by PT-Boat in March, 1942, U.S. General Douglas MacArthur conferred with President Manuel Quezon about what should be done to prevent millions of dollars worth of currency, coin and bullion from falling into the hands of the advancing Japanese.

The two men held this momentous discussion while walking amidst the warren of caves beneath the fortress. Overhead Japanese bombers were mercilessly pounding the surface.

That the island fortress of Corregidor would fall, as had the rest of the Philippines, was a forgone conclusion. How long it could holdout was another matter.

The paper currency on Corregidor, Philippine and U.S., would have to be burned, (as it had been in Hawaii). There was no question about that. The Japanese had captured almost $20.5-million in currency when they occupied the Treasury Building in Manila in January.

MacArthur estimated Corregidor's caves would hold 43,000 people, mostly soldiers plus Quezon, government officials and civilians. In fact, there were more than twice that number present. Before he left, MacArthur assured Quezon all the gold bullion would have already been spirited out via submarine. But that never happened.

Meanwhile, there was some 16,486,490 U.S. silver dollar size Peso coins alone. A submarine run would be too risky. And taking up that much space, let alone the added weight for the PT-Boat MacArthur, his family, and a select handful of staffers would be leaving on, was out of the question.

In 1898, after the Spanish-American War, administration of the Philippines passed to the United States. The U.S. congress passed legislation in 1902 recognizing the Peso as the standard unit of currency and providing for minor issues of 50; 20; 10; 5; 1; and half-centavo coins.

Sometimes, when the Japanese bombing seemed lighter or in the rare instances when it actually stopped briefly, MacArthur would venture from the labyrinth below the surface and survey the gnarled and smashed ruins of the fortress above.