Japanese Invasion Money - Counterfeit Notes

Counterfeit Notes

The U.S. counterfeited notes throughout the war partly in an attempt to destabilize the local economy, thereby demoralizing the Japanese, and to supply guerillas fighting the Japanese. General MacArthur 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 U.S. 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.

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 has a request for another 70,000 pieces of counterfeit script as the previous supply "proved to be very useful" and was exhausted.