From: mpcgram-owner@papermoneyworld.net on behalf of MPCgram [mpcgram@yahoo.com] Sent: Friday, October 13, 2006 9:44 AM To: mpcgram@papermoneyworld.net Subject: MPCGram 1509 ------------------------ / MPC Gram News Letter / ----------------------- =========================================== MPC GRAM =========================================== Vol 7, no 1509 Friday October 13, 2006 Japanese Puppet Banks in China and an Old letter part II by Jim Downey The painful experience gained by the Japanese in North China caused them to adopt a rather different policy in Central and South China. Knowing the difficulties in creating a new system the Japanese gave up their attempts to destroy the Chinese legal tender, but tried to collect as much Chinese money as they could for the purpose of gaining more materials in the war areas. The puppet "Hwa Hsin Bank" was established in May 1939. This puppet institution was different from the "FRB" in North China, for it did not act as a sort of central bank. It was not included in the so-called yen bloc because it used the Chinese legal tender as a reserve for the issuance of bogus notes. "Hwa Hsin" notes were merely nominal in value, aiming at absorption of Chinese notes. The creation of the puppet "Central Reserve Bank" in January, 1942, did not change the enemy's policy of economic exploitation, Japanese spokesmen have been repeatedly announcing that Japan does not want to drive out fapi [this is a Chinese word which essentially means the Chinese legal tender or the notes of the native Chinese banks] entirely from the occupied regions, for the absence of fapi will create further troubles for the bogus money. Meanwhile, the Japanese and their puppets have been making every effort to stabilize the exchange position of the "CRB" notes. The Japanese have ordered the reopening of those Shanghai banks closed after the outbreak of the Pacific war and the resultant complete occupation of the port city by the Japanese. As a result, there are now 194 Chinese banks in Shanghai. Ninety-three of them have their headquarters there. An overwhelming majority of the 123 are commercial banks, engaged in sheer speculation undertakings. Most of the banks are capitalized at around $1,000,000. The largest are capitalized at about $2,000,000. Both coins and paper currency formerly belonging to these banks were taken away by the Japanese in exchange for "CRB" notes. The Japanese are practicing a similar policy in South China. They have thus far created about 20 banks, both modern and old-fashioned, at Canton, former provincial capital of Kwangtung. With the Kwangtung branch of the "CRB" as a nucleus, these banks are promoting the use of Japanese military yen and "CRB" notes. In the spring of 1940, a so-called financial offensive was launched by the Japanese in Kwangtung Province. All sorts of differences were made about the value of the different issues of Chinese legal tender, aiming at the depreciation of Chinese notes. This was carried out simultaneously in other parts of the occupied areas. In Canton, the Yokohama Specie Bank, the Bank of Taiwan (Formosa), and the puppet "Kwangtung Provincial Bank" are the chief agencies in creating such disturbances. The Japanese created a "General Remittance Bureau of Canton" to take charge of the remittances of overseas Chinese, with the obvious purpose of seizing more foreign exchange. Branch bureaus have been set up in six Kwangtung counties. Assisting the matter is the puppet "Overseas Bank of Canton," whose function is to make necessary associations with Hong Kong and the South Seas. Chinese traitors are sent to various parts of the South Seas to persuade the overseas Chinese to remit their money home through the Yokohama Specie Bank, the Bank of Taiwan, or any other puppet bank. The center of their activity is Singapore. Kwangtung banks were ordered to hand over their fapi-reserves and were given "CRB" notes, which are now compulsorily circulated in South China. It shows how the Japs try to operate in all the occupied areas and which is not working out favorably." There is no question that the Japanese monetary policy in China was a disaster for both Japan and China. The Nationalist Chinese monetary policies of Chiang Kai Shek were as damaging to the Chinese economy as the Japanese policy was, if not more so. Rampant inflation hit both the puppet bank currencies and the nationalist yuan by the end of the war. ***************************************************** Championship Question Corner Question: Question Question 165, difficulty 2. What Military Fest Certificate features a chess theme? Yesterday's Question 164, difficulty 2. Who was the emperor of Manchukuo? What was distinctive about the Manchukuo flag and why is that particular flag of interest to numismatists? Question: Ken Berger responds that Henry Pu Yi was the emperor of Manchukuo and the las emperor of China. Kathy Myers answered: The easy part of the question was the emperor of Manchukuo. That was Henry Pu Yi,a previous emperor of China. Re: the flag, I'll venture a guess. The flag of Manchukuo was a spin-off of the pre-Nationalist flag of China. It keeps the same 5-colored theme - red, white, blue, black and yellow stripes, but changes the yellow stripe into the main background color of the flag. I am guessing that the interest of the flag to numismatists is that the 5-colored flag was reproduced on the first notes, and this was a technological advance for Japan's printing bureau at the time. I am a bit baffled by this one, so I'll be anxious to read what answers other gram readers provide, including my hubby, who collects the Manchukuo notes and has read up on the subject. [Well done Kathy. Yes the significance of the flag is its use on Manchukuo currency--paper money AND coins. That is a bit unusual in itself, but the color printing of the flag on the notes was a technical achievement as you say.--Ed] ========================================== Editorial ========================================== As I prepare this Gram, I am watching the very end of the chess world championship. It has been an amazing contest. Essentially, they are in overtime. What has this to do with numismatics and the Gram? Well chess is represented in numismatics in many ways and places (including MFC). Ah, but the Gram question is an interesting one. The only other significant mention of chess in the Gram (I think) occurred in 1991 when the defending champion Kramnik won the title in London. As it happened the match started during the London Paper Money Congress and I attended game 1 (it was really exciting). So, to me at least there is a paper money-Gram connection to the world championship. ========================================= Mail Call =========================================== Dear Gram, I had a nice day today. The Nassau County Museum has an exhibition of Mort Kunstler paintings. I assume everyone know that he has painted hundreds of military scenes, to include a pile of very famous Civil War scenarios, and also others from as early as the Revolutionary War right through to Vietnam and the current Iraqi Freedom. His work is amazing. You can get real close and see the steam coming out of the mouths of soldiers in the snow. By some great good fortune he was at the museum today. I heard him being interviewed and he said that he had started drawing at 4 and by 12 was as good as he is today. The only difference in that now he is a lot faster. He claimed to do about 8 paintings a year. I was amazed to see one scene from stories that I have written, showing the Jewish inmates at Sachsenhausen Concentration Camp counterfeiting American $50 bills. He got it slightly wrong, the Counterfeiters worked on a $100 bill. I also noticed in the Kunstler write-up that the Jews were “forced” to counterfeit the currency. That is not exactly true. It was a good job and kept a prisoner out of the crematorium, so most of them begged for the job, and some that had no skills even lied to get into the counterfeiting group. He also says that no American bills were counterfeited, and that is still being argued. There are some counterfeiters who have stated that the plot never came to fruition, others who have stated that about four hundred $100 bills were finished, and an American Army officer who had worked for the Secret Service thought that about 6,000 notes were probably finished. Besides that, all else was as it should be. http://www.mortkunstler.com/gallery/merchant.ihtml?pid=356&step=4 Herb Friedman =========================================== 2006 The London Paper Money Fair has moved to: Victory Services Club, 63 Seymour Street, off Edgware Road, Marble Arch London and the dates are: Nov 26. see: www.britishnotes.co.uk or www.londonpapermoneyfair.co.uk Nov 11, Boling house warming party and mini Fest (1600-2000). Nov 16-19, 2007 Pcda St Louis. IBNS meeting with program by Jim Downey subject "notes with military themes." It is Saturday at 1:00, mini-Fest to follow. 2007 MPCFest: March 23-25 2007 details TBA. [Reservations received: John Cheney(T, k), Harold Kroll(T), Ski, Louise and Joe Boling (k), Warner and Jane (auxilliary)(T), Ian and Bella Marshall(T), Jim Downey(T), Howard Daniel(T,M), Bill Yanchick and Miles (T), Kathy and Dan Freeland (k,T), Sparky Watson (T), Roger Urce(T), Ray and Steve Feller, Fred and Judy (auxiliary) Schwan(T). [Totals: festers 19, new Festers 0, Tiger lillies (auxilliary) 2, k=king room] Eternal Festers: Mike Cummings, Robert Kutcher, Leo May. Coordinating instructions. Please try to coordinate ground transportation from Cleveland, Detroit or Toledo Airports to reduce rental cars. If you cannot find a ride on your own contact adjutant and transportation officer Sparky Watson (mark.watson@edwards.af.mil). Neither Sparky nor the Fest accept any responsibility for ground transportation, but we will be happy to try to coordinate a ride for you. This MIGHT include ground transportation being sent from Fest Headquarters, but you cannot count on this and you might have to wait depending on other demands. Memphis 21-23 June. ANA Summer semnar Session I: June 24-29, 2007* Session II: June 30-July 6, 2007 ANA Convention, Milwaukee. ========================================== for dealer Hot Contact list, ANA MPC museum holdings and other static information please click this link: http://www.papermoneyworld.net/Gramattichments.htm ========================================= POST / BASE EXCHANGE(PX/BX/NEX) Dump your dupes! Your classified advertisement for items for sale, purchase or trade will be run here for free. Send your ads to the gram. This service is for everyone, most humble dealer or most advanced collector. The point is to make the gram more interesting. In all cases confirm your order via email first. WANTED SECTION: Collectors may submit lists of items wanted for their collections for listing here. WANTED - JAPANESE INVASION MONEY (JIM). Collector/researcher of these notes by zone, type, and block letter, or number will buy or trade.  Checklist available, Anythinfg unusual is of particular interest. Mike Payton, 6609 Craig, Merriam, KS. USA 66202, papermoneymike@yahoo.com Dealers and collectors who have these items, are then encouraged to list them for sale in the above section as a reply. Wanted listings will run for a period of 1 month. ======================================= MPCGram Staff: Publisher, editor: Fred Schwan fred@papermoneyworld.net; Subscription Manager:Doug Bell- doug@papermoneyworld.net Tuesday Columnist : JoeBoling- JoeBoling@aol.com Friday Columnist: Warner Talso: wtalso@aol.com Fest Auctioneer: Larry "Ski"Smulczenski - skitex@cox.net, Critic:Harold Kroll - HARBONS@aol.com Scholarship Coordinator: Marcus Turner- marucs@papermoneyworld.net; Webmaster and Technical Advisors:Doug Bell "Wiz" - doug@papermoneyworld.net Russ Walsh -russ.walsh@gte.net Fact Checker: Warner Talso -Calendar Coordinator: John and Nancy Wilson -The Boss: Judy Schwan MPC Gram is published by BNR Press and papermoneyworld.com as a free service to the community of military money collectors. Your suggestions, criticisms, complaints, editorial contributions, letters, and even praise are very welcome. The entire contents including linked illustrations are copyright protected by the publishers. In the case of contributors, the copyright is protected on behalf of the creators. Please send all correspondence regarding the gram to MPCgram@yahoo.com. Thank you very much for your participation. __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! 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