Army of the United States of America
Military Script Issue
7th Military District Issue
S715 1943 One Peso Black Greenish Slate Serials Range #1,001 to 41,756.
Various Serial Numbers.
Please see the Scan/s For your Personal Grading.
On May 9, 1942, Col Roger Hillsman, commanding United States Forces in the Far East (USAFFE) forces in Negros, ordered all units to surrender. Only one of five batallions complied.
The unsurrendered rank and file began the guerilla movements. At the urging of these groups both Abcede and Mata accepted command of guerillas in southern and northern Negros.
Meanwhile, over in Panay, Col. Peralta was organizing a IV Philippine Corps. When Abcede and Mata affiliated their organziations with his, both were given promotions and their joint units were designated the 72nd Infantry.
On Jan 17, 1943, Gen MacArthur authorized him to issue "a reasonable amount of military script". Peralta lost no time in passing on the good news and authorized Col. Abcede to issue 500,000 pesos in Negros. Later the amount was increased to 5m pesos.
The first notes printed bear the designation IV Philippine Corps, and were printed under the first authorization of 500,000 pesos.
Gen MacArthur ordered Col. Peralta to dissolve his IV Philippine Corps and restrict his command to Negros...so the second printing, while issued under Peralta's 5m peso authorization, had the designation changed to 7th Military District.
Printing was ordered stopped by Maj Jesus Villamor, who was appointed Commanding Officer of the 7th Military District by Gen MacArthur. By then a total of 824,450 pesos had been printed, and all but 1,213 pesos put in circulation
When the Philippines were attacked by the Japanese on December 8, 1941 (same day as Pearl Harbor, December 7) one of the immediate results was an enormous increase in government expenditures and thus a massive shortage of paper money.
Everyone was dependent on the capital (Manila) for their currency supplies, but with the city under Japanese rule, there was nothing forthcoming. Even President Quezon fled to MacArthur's headquarters on Corregidor and from there (and later from Washington D.C.) created Currency Committees which were authorized to print emergency money.
All emergency currencies issued under this authority was legal tender no matter of where it was printed. The official exchange rate was pegged at 2 Philippine Pesos to One US Dollar. Although this money was outlawed by the Japanese invaders, it none the less circulated. This post-surrender paper money is referred to as 'guerilla' currency (the guerilla movement was led by mostly middle class Filipino officers who were enthusiastically pro - American).
The use of emergency notes was in direct conflict with the Japanese and their attempt to have everyone (in all of the conquered territories) use their issues of currency, commonly referred to as JIM