From: mpcgram-owner@mail.papermoneyworld.net on behalf of MPCgram [mpcgram@yahoo.com] Sent: Friday, February 23, 2007 9:31 PM To: mpcgram@papermoneyworld.net Subject: MPCGram 1525 MPC Gram News Letter =========================================== MPC GRAM =========================================== Series 8, no 1525 Friday, February 23, 2007 Back to the Philippines by Jim Downey       MPCGram 1513 contained excerpts from Chick Parsons' report of conditions in the Philippines through June 1942. In March 1943, Parsons returned to the Philippines by submarine. He remained there until July 1943. The following text is taken from his report to General MacArthur's headquarters after returning from this trip to the Philippines. Unfortunately, the original report from which the excerpt was taken was water damaged. The damaged portion is identified in the text. The entirety of both reports (this one and the previous Spiker/Grispholm report excerpted in MPCGram1513) can be found in the Download Page at www.chickparsons.com.             "In the Philippines, a number of types of currency are now being circulated. In the occupied areas, the principal currency is the Japanese military currency, in denominations of one, five, ten, and fifty centavos, one, five, and ten pesos. Philippine Government currency is still permitted circulation by the enemy, but it has practically disappeared from the market altogether; so much so that when it is presented for use, in enemy immediately suspects that it may represent an illegitimate transaction. (Note that any planned use of "old" money in the occupied areas of the Philippines must carry with it a plan for the exchange of the currency for Japanese military currency within the areas through trusted contacts to avoid suspicion being aroused.) In the occupied areas, there is a black market for U.S. currency, usually at a small discount on par (about 180 pesos Japanese military currency per 100 dollars U.S. currency), due to the risk run by the parties to the exchange (death, if caught).       In the "free" areas, emergency currency authorized before the southern provinces fell into the hands of the enemy still has a rather widespread circulation. In the recognized guerrilla districts, new issue of emergency currency is the basis of circulation, and the public has confidence in this currency as demonstrated by its widespread circulation. The 10th Military District currency for Mindanao is accepted at full value in the adjoining districts. In the unrecognized districts, nearly every barrio has printed emergency currency (usually in small change), using as security a supply of 20 peso "bombers" in provincial emergency currency, which because of the high denomination is worthless for ordinary circulation within the barrios. It is planned by the various barrios to redeem the "barrio" currency at the end of the emergency. This type of currency is not given widespread circulation -- the bills from one barrio being valueless in other barrios.       In Luzon, numerous groups of guerrillas have printed notes for use in territories. These guerrillas have in most part been unrecognized and lawless forces, using their force of arms to commandeer supplies, food, equipment, etc. They have printed and forced the acceptance of their script on the public. The redemption of this type of currency after the war should be handled with great care. This does not refer to the legitimate issues of circulating notes by the properly organized and recognized units of Colonel Thorpe, those in the Mountain Provinces, in Ilocos Norte, and any units which by their activities may be considered as acceptable guerrilla units.       Within the "free" areas, when the guerrilla currency first was placed in circulation, there were black market exchange rates -- generally against the new currency. As recognition has come to the districts (10th Military District particularly), the guerrilla currency has risen in value and may generally be considered as almost on a par with the Philippine Government currency. Practically no U.S. currency is encountered in the free areas, but it may readily be converted into either Philippine currency or emergency currency, at better than par, in small amounts.       No coins may be found in circulation either in the free or in the occupied areas. They have disappeared from use completely. It is reported that the enemy has exported all coins captured or gathered after the surrender for use as metal in Japan, and thus only a limited amount of coins may be expected to be placed in circulation again when normal conditions return to the country. [water damage here] notes and coins. It would seem advisable for the Commonwealth Government now functioning in Washington to prepare plates and dies for new bills and coins, and have a supply, of both prepared and ready to send with the Army on its return to the Islands. Upon arrival of the new currency in the Islands, all currency in use should be banned immediately, and plans outlined carefully for the quick redemption of the various types of currency which may be considered "legitimate." For, instance, U.S. notes, and emergency currency of recognized guerrilla districts should be redeemed without question; Philippine Government currency should be redeemed in non-speculative amounts and where the official handling the exchange is reasonably sure that the notes have not come from pro-Japanese officials or from sources within the enemy organization. (This is indicated because of the fact that the enemy has conducted a systematic acquisition of Government currency, and many of the pro-Japanese officials have converted surplus funds into Philippine Government currency).       Currency which should be prohibited, and not redeemed, would include Japanese Military currency, (for reasons which will be set forth), barrio currency, fifty peso bills of the 1921 series, known as "Lawtons," which represent stolen bills from cache in Bukidnon where Commissioner Guingona buried the only bills of this series in existence (and the issue of which had not been authorized), amounting to four million pesos. Holders of these bills know quite well of their doubtful value, as is shown by the traffic in the bills at rates from five to twenty-five pesos of emergency currency per "Lawton."       Concerning the remark above as to the advisability of not redeeming any of the Japanese military currency, there is no doubt that some hardship may be occasioned by this move. However, there has been so much speculation in this currency, that it may be generally considered that no large amounts will be found in the hands of anyone who has not accumulated it for speculative reasons. The people who have disposed of the currency have done so sometimes at great sacrifice -- thus the original holders of Japanese currency, which they may have had to accept in exchange for their labors, their crops or through disposal of their assets, have already made their sacrifice in disposing of the money at a considerable loss. Many of the people have also disposed of the Japanese currency at the race tracks, cockpits, gambling-halls, cabarets, the jai-alai, and other places of amusement, so that it resulted in unprecedented prosperity for those places. It is to be expected that they will have on hand large quantities of the currency. Should they be permitted to benefit as a result of the war?         Banking institutions will not necessarily suffer by the non-redemption of Japanese Military currency. They have as a rule worked out a more or less secret code for indicating which deposits made by their clients since the war have been made in Philippine Government currency, and they need not accept the responsibility of repaying deposits of Japanese currency with whatever new Philippine Government currency that may be placed in circulation after the emergency. They would be responsible, of course, for returning deposits in the same value of Japanese military currency.         A plan to"         [water damage here]         Regarding the rapid redemption of guerrilla and "emergency" circulating notes, this is very important to avoid the counterfeiting of some of the currency. Due to the limited facilities available and the conditions under which the guerrilla and emergency currency was printed, ordinary precautions to prevent counterfeiting could not be followed. As soon as normal conditions return and facilities may be made available to uncouth individuals, the bills could be counterfeited without difficulty. The best insurance against this would be to ban the circulation of all types of currency (as noted above), and order the redemption of all currencies within a period of thirty days. It will admittedly be quite a task to redeem all currencies within such a comparatively short time, but it should be attempted to avoid the attempted possibilities of counterfeiting. Another item to consider is that the emergency funds, and the guerrilla emergency notes should probably be redeemed only at the provincial districts and provinces which have safeguarded the currency by signatures of one or more officials of the province and have included secret markings in the bills to avoid imitations. It should not be much of a hardship to force the return of the money to the province where issued, and the additional safety in doing so will well justify the inconveniences to some of the people.          It is estimated the Japanese military organization has put into circulation throughout the occupied areas more than one hundred million pesos and it has been estimated that about twelve million pesos in Japanese military currency is being added to that amount monthly. It is not beyond imagination to consider that by the time normal conditions are restored, there may be in circulation in the occupied areas a much larger amount of Japanese currency, than original Philippine Government currency before the war in the entire archipelago. It may be of interest to note that in the "free" areas practically no Japanese military currency may be found. That which may have gotten into the area in the earlier days has all been sent into the occupied areas in exchange for purchases or by the guerrilla units for intelligence work behind the enemy lines. It is considered valueless." ***************************************************** Championship Question Corner Question 178. Difficuly 3. Name four countries that participated in the WWII occupation of Germany AND issued an army currency for the occupation. Yesterday's:Question 177. Difficuly 3. Whose portrait appears on the $10 and $200 war bonds respectively? Answers and comments: Bill Myers correctly answered that Benjamin Franklin is on the $10 war bond and Franklin Roosevelt on the $200. ========================================== Editorial ========================================== Thank you to everone who has written in the past few days. It is much easier to get Grams out when mail is coming in. Saturday I am going to a stamp show of all things. Yes, as in philately. I do not go to many of these, but I usually find a few things of interest. I hope that this is no exception. In my mail box was a solicitation from Krause Publications to be listed in a dealer directory. That is interesting enough I suppose, but I was amazed at the questionare. Advertisers were asked to indicate their various numismatic specialities and to my astonishment one of the listed categories was MILITARY. Wow. ========================================= Mail Call (send mail to MPCGram@yahoo.com) =========================================== Dear Editor, I would suggest that you print that new book in color in India or Hong Kong...hang in the 21st century........ Colinski, Frozen Tundra, WI Dear Editor, You say that a book in color would cost double that of a B/W book. My sources do not agree. Maybe you are using the wrong printers? David Klinger Dear editor, I disagree with Joe Boling and support the Stolen Valor Act, I believe that there should be no collecting or dealing in military medals and awards as he states. It is just so wrong to put a monetary value on them. The only military awards I have are mine and my Father's, I have his because he is no longer alive. We both earned our military awards the honorable way. Sincerely, Gavin Quinn Active Duty USAF 1988-1994 Dear Gavin, Cool. Thanks for your thoughts. Sounds like this is something that we should bat around for awhile. By chance today I read that US military medals and decorations can be worn by former military personnel on civilian clothing at various social events. I did not know that. Of course I have seen it done (at least on TV etc.), but I did not know that it was authorized. Editor =========================================== Calendar =========================================== 2007 CPMX March 8-11. MPCFest: March 23-25 2007 details TBA. ANA Summer semnar Session I: June 24-29, 2007* Session II: June 30-July 6, 2007 Memphis 6-8 July 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. ____________________________________________________________________________________ Never Miss an Email Stay connected with Yahoo! Mail on your mobile. Get started! http://mobile.yahoo.com/services?promote=mail mpc gram mail list To subscribe to a list, send a mail message to "imailsrv@papermoneyworld.net" at this address with the following in the body of the message: subscribe mpcgram your_full_name To unsubscribe from a list, send a mail message to "imailsrv@papermoneyworld.net" at this address with the following in the body of the message: unsubscribe mpcgram if you have any problems please report then to doug@papermoneyworld.net