Japanese Invasion Money

Japanese invasion money, officially known as Southern Development Bank Notes, was currency issued by the Japanese Military Authority, as a replacement for local currency after the conquest of colonies and other states 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.

In August 1940, Japanese Foreign Minister Yōsuke Matsuoka 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.

Beginning with the capture of the Philippines, the Japanese military confiscated all hard currency, both on a federal and individual level, replacing it with locally printed notes 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”. Called “Mickey Mouse Money” by local Filipinos It was valueless after the overthrow of the Japanese, and tons of it were burned. Japanese troops were ordered to destroy bank records and any remaining currency prior to capitulation.

By the end of World War II, the Co-Prosperity Sphere where Invasion Monies were issued included the Philippines, Burma (now Myanmar), Malaya, North Borneo and Sarawak (now Malaysia), Singapore, Brunei, the Dutch East Indies (now Indonesia) and some areas of Oceania (New Guinea and the Solomon and Gilbert islands).