CAGAYAN

The Japanese Tanaka Detachment landed at Aparri and Gonzaga on December 10, 1941 and occupied the capital, Tuguegarao, and its adjacent airfield on December 12.

Provincial Governor Marcelo Adduru hastily evacuated the entire provincial government to the municipality of Tuao where the provincial government continued to function despite its isolation. One of the major problems confronting it was in paying for necessary expenditures. The small amount of ready cash was quickly exhausted, and soon also the supply of Treasury checks. On January 1, 1942 the Provincial Board created a Currency Board to devise ways to overcome the currency shortage. This Currency Board issued four distinct types of currency.

The first issue utilized postal money order forms, the serial numbers of which were recorded. Originally, some odd denominations were issued. But as this did not provide an adequate circulating medium, subsequent issues were produced in standard currency denominations.

When the available supply of money order forms was exhausted, a second issue of currency was provided by utilizing the stock of Internal Revenue stamps affixed to mimeographed forms. The Peso denominations are dated Tuao, cag. Jan. 1, 1942 although all were issued much later. Specimen notes, with Sample written in the space normally occupied by the revenue stamp, were distributed to Municipalities to be posted in public places to acquaint people with this new form of currency.

When the supply of revenue stamps ran out, a third issue was created by imprinting a facsimile WAR BILL stamp on the mimeographed forms. When the Provincial Fiscal voiced the opinion that this might be construed as counterfeiting Commonwealth revenue stamps, printing came to a halt, with only a small quantity of 50 centavos notes having been issued.

A fourth issue was prepared by printing currency from hand-engraved plates made of lead obtained from old auto batteries. While this issue was being printed radio contact was established with President Quezon who officially approved the actions of the Currency Board.

Increased Japanese military activity forced the provincial government to move from Tuao to Magabubong, a barrio of the Municipality of Rizal. Later it became necessary to leave Cagayan province entirely, and the provincial government was re-established at Kabugao in the sub-province of Apayao. The fourth issue of currency may have been undertaken originally at Tuao, but the majority was printed at the later locations.


From: Catalogue