“After the Pearl Harbor bombing, people in Hawai’i hoarded money against an emergency such as a possible invasion. Fearing that the Japanese might capture Hawai‘i and find all this money, the U.S. government on Jan. 2, 1942, made it illegal for individuals to own more than $200 in cash. Businesses could own $500.”
“Everybody was supposed to turn in their cash and securities. Patriotically, they did so – $200 million worth.” (Krauss)
“From the time of the Blitz, everyone realized the possibility of the return of the (Japanese) and naturally gave consideration to the safety of their money.”
“Those who had bank deposits began to worry about the security of their deposits and as a result many withdrew their savings and secreted them in various places considered safe.”
“This worried the banks, but a more serious problem was occasioned by the cashing of drafts by Navy ships for paying the crews in cash and for other purposes and depositing drafts to cover the withdrawals.”
“The money received by the ships, which was used to pay the sailors, was all too quickly spent in Hawaii, but the receivers of that money carefully withdrew a considerable portion of it from circulation and secreted in places best known to themselves. The result was that the banks were gradually running out of cash.”
“During the first week in January 1942 a group of bankers called on me to assist them in getting the Army and Navy to fly in money from the Mainland for them. They had plenty of credit, but their actual cash had shrunk to an alarming state.”
“I had a great deal of sympathy for the bankers, but their plan had two very serious objections.”
“First, neither the Military Governor nor anyone else in the military service had a right to place the Government in the position of insuring private money.”
“Second, the admirals and the generals were using every available airplane for military purposes and both were pleading for more.”
“Both of these reasons forbade the use of military aircraft for the purpose, but it was clear that some remedial action had to be taken and promptly, since the situation was worsening rapidly.”
“The bankers informed me that there was plenty of cash in the Territory but that it was not in their banks. I agreed to think the matter over and late that night I came up with a plan which was a little frightening to me but it would work.”
“When I informed the bankers of it the next day it not only frightened them but astonished them as well.”
“The Military Governor would issue an order prohibiting the withdrawal of more than $200 per month from a bank and forbidding the possession of more than $200 in cash.”
“Exceptions to the order included the Federal Government, the Territorial Government, banks, trust companies, finance companies, building and loan associations, etc.”
“There was also a catch-all provision which permitted anyone to be exempted from the provisions of the order upon a showing of the necessity therefor.”
“The bankers agreed that it might solve their problem, and I became more convinced than ever that some means must be found for substituting some form of legal tender for our present paper money.”
“The so-called ‘money order’ was issued as General Orders #51 and dated January 9, 1942. The effective date of the order was January 12th, three days after the issuance of it.”
“The new bills were similar to the ordinary bank note except that the seals and the numbers were printed in brown ink instead of green and the bills bore the word ‘Hawaii’ overprinted in black on both sides. It was explained to me that the printing of red money would require prohibitive changes in normal Treasury practice and processes.”
“As the old bills came into banks they were exchanged for new bills and then bundled up and destroyed”. (Maj Gen Thomas H Green)
“At first, the money was incinerated at the O‘ahu Cemetery crematorium, in Nu‘uanu Valley. However, it was soon discovered that the facility couldn’t handle the large quantity of bills, it was decided to burn the bills in the ‘Aiea Sugar mill.” (Numismatist)
“All of this was done with the full cooperation of Governor Poindexter and was under careful scrutiny by a committee composed of a local banker, a Treasury representative, and a junior Army officer.”
“Applications for the last-named post were numerous and it was not until I learned of the practice of lighting cigarettes from bills of large denominations that I understood the desirability of such duty.”
“This ritual was enjoyed, especially by young officers who had little prospect of handling, much less burning, bills of large denominations.”
“The objective of the plan was now complete. It placed the Treasury in the position of being able to declare our overprinted Hawaiian money not legal tender in the event that the (Japanese) were able to take the Hawaiian Islands.”
“The plan worked so well in Hawaii that the use of scrip was adopted all-over the world wherever our troops served. While the need for ‘Emmons Money’ ceased with the termination of hostilities with Japan, the money is still in use and I have personally received some of the bills in change in various parts of the United States. (Maj Gen Thomas H Green)
“By October of 1944, the U.S. no longer felt the threat from Japan, and they took the emergency bills out of circulation, allowing normal currency to re-enter Hawaii. The treasury took some of the overprint bills out of circulation and pushed some of them to other islands in the Pacific.” (Numismatist)
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