Images of Old Hawaiʻi

  • Home
  • About
  • Categories
    • Ali’i / Chiefs / Governance
    • American Protestant Mission
    • Buildings
    • Collections
    • Economy
    • Missionaries / Churches / Religious Buildings
    • General
    • Hawaiian Traditions
    • Other Summaries
    • Mayflower Summaries
    • Mayflower Full Summaries
    • Military
    • Place Names
    • Prominent People
    • Schools
    • Sailing, Shipping & Shipwrecks
    • Voyage of the Thaddeus
  • Collections
  • Contact
  • Follow

January 12, 2019 by Peter T Young Leave a Comment

Money to Burn

“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)

Follow Peter T Young on Facebook 

Follow Peter T Young on Google+ 

Follow Peter T Young on LinkedIn  

Follow Peter T Young on Blogger

© 2019 Hoʻokuleana LLC

Hawaii_Overprint-10_Dollar-Bill
Oahu-cemetery-crematorium&chapel
Oahu-cemetery-crematorium&chapel
C. Brewer's Honolulu plantation mill (1898-1946) located at 'Aiea, O'ahu, ca. 1902
C. Brewer’s Honolulu plantation mill (1898-1946) located at ‘Aiea, O’ahu, ca. 1902
US-$1-SC-1935-A-Fr.2300
US-$1-SC-1935-A-Fr.2300
US-$5-FRN-1934-A-Fr.2302
US-$5-FRN-1934-A-Fr.2302
US-$10-FRN-1934-A-Fr.2303
US-$10-FRN-1934-A-Fr.2303
US-$20-FRN-1934-A-Fr.2305
US-$20-FRN-1934-A-Fr.2305

Filed Under: Ali'i / Chiefs / Governance, Military, General Tagged With: Hawaii, Emmons Money, Delos Carleton Emmons

January 9, 2019 by Peter T Young 1 Comment

Emmons Money

“Delos Carleton Emmons was born on January 17, 1888, in Huntington, West Virginia. He graduated from the United States Military Academy in June 1909 and was commissioned a second lieutenant of infantry. He later transferred to aviation and rose through the ranks, becoming a major general in 1939.”

“He was soon promoted to lieutenant general and became chief of the Air Force Combat Command in June 1941. He replaced Major General Walter C. Short as commanding general of the Hawaiian Department on December 17, ten days after the Pearl Harbor attack.”

“Emmons oversaw the implementation of martial law in Hawai‘i and is credited with preventing the mass exclusion of Japanese in the Islands. He also promoted the entry of the Nisei into the military with the formation of the 100th Infantry Battalion and eventually encouraged the end of the mass incarceration of Japanese Americans on the mainland.” (Nakamura)

“Martial law involved the outright suspension of constitutional liberties as civilian courts were declared closed. Additionally, all government functions—federal, territorial, and municipal—were placed under army control, and a military regime was established. “

“As the commanding general, Emmons held the title of the ‘Military Governor’ of Hawai‘i and controlled the entire civilian population with absolute discretionary powers.”

“According to some ‘Emmons played a key role in the fate of Japanese Americans in Hawai‘i’ by challenging allegations of sabotage made by Navy Secretary Frank Knox. Emmons is thus credited with preventing plans for the mass forced removal of Japanese from the Islands citing logistical problems, cost, and labor shortages.”

“However, in lieu of mass removal, the army and the FBI quickly rounded up aliens and other suspicious persons in the Japanese community who had been investigated earlier for being disloyal or dangerous during a war. Of the 1,569 persons eventually detained on suspicion of disloyalty, 1,444 were of Japanese descent.”

“Emmons also played a key role in the formation of the 100th Infantry Battalion and supported the entry of Nisei into the military who were partly responding to ‘extreme insecurity’ in wartime Hawai‘i.”

“During the period of military rule in Hawai‘i that lasted until late October 1944, some 181 general orders were issued under the names of the commanding general Emmons and Lt. Col. Thomas H. Green, the latter having been given the title of ‘Executive, Office of the Military Governor.’” (Nakamura)

“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.”

“Before the effective date of the order, more than one and one-half million dollars had been deposited in the banks and on each of the following days there were queues of people waiting to deposit their money in the banks.”

“Suddenly, the banks found themselves with more than twenty million dollars on deposit. Some of the money deposited was in the form of gold certificates long outmoded by the Treasury, and much of the money was moist and even wet, indicating that it had recently been excavated.”

“The public response to General Orders # 51 was instantaneous. Perhaps some of it was motivated by fear of punishment because the penalties prescribed were severe. However, I think the major factor in this, as well as in all other undertakings, was that the public trusted the integrity and intelligence of the Military Governor.”

“The problem of keeping the banks supplied with money having been solved for the moment, there still remained the greater problem of substituting something for that money. I was obsessed with the idea that something further must be done in the interest of security.”

“I finally came up with the idea of exchanging United States currency for some other form of legal tender which, in the event of invasion, could be outlawed as legal tender and therefore defeat its use by an invader.”

“I appreciated that any such plan would have to be approved by the United States Treasury. I began discussing the idea with my staff and decided upon a substitute paper money which would be red in color instead of green.”

“I began calling it ‘Emmons Money.’”

“I took up the matter with General Emmons who scoffed at the idea of calling the substitute money ‘Emmons Money’ but he told me to go ahead.”

“Early in March 1942, a Treasury detail came to Hawaii from Washington to close the deal with us whereby regular currency would be exchanged for specially printed paper money. The agreement was consummated and some twenty million dollars on regular currency was exchanged for the special issue money.”

“When the new money arrived I was disappointed as I hoped that it would be red in color and have ‘Emmons’ written all over 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.”

“The new bills worked out well, in fact there was an immediate demand for the new currency and the transfer from the old to the new was made without incident.”

“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)s were able to take the Hawaiian Islands.” (Maj Gen Thomas H Green)

“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.”

“I obtained the first four one dollar bills of this Emmons money to be issued in Hawaii by exchanging for it four one dollar bills of regular currency.”

“At my request, General Emmons endorsed his name on all four bills and I did likewise. I then sent all four bills to Admiral Nimitz with the request that he endorse his name on all four bills, retain one for his scrap book and return the other three to me.”

“In my letter of transmittal, I explained that I intended to give General Emmons one of the bills for his scrap book, retain one for myself, and send the fourth to The Adjutant General of the Army for historical purposes, because, to my knowledge, it was the first time such a money transaction had been accomplished.”

“With his reply, dated July 29, 1942, Admiral Nimitz returned all four of the bills, duly endorsed, and stating that he was not including American currency in his scrap book and added, ‘No doubt you will have constructive use for the one allocated to me.’”

“At the bottom of the letter was a pen-written postscript which typifies the keen sense of humor possessed by that great commander. It read, ‘I have a particular yen for Japanese yen taken from captured or destroyed planes – and if you get a collection of that kind of currency please don’t forget me. CWN.’” (Maj Gen Thomas H Green)

Follow Peter T Young on Facebook 

Follow Peter T Young on Google+ 

Follow Peter T Young on LinkedIn  

Follow Peter T Young on Blogger

© 2019 Hoʻokuleana LLC

Hawaii_Overprint-10_Dollar-Bill
US-$1-SC-1935-A-Fr.2300
US-$1-SC-1935-A-Fr.2300
US-$5-FRN-1934-A-Fr.2302
US-$5-FRN-1934-A-Fr.2302
US-$10-FRN-1934-A-Fr.2303
US-$10-FRN-1934-A-Fr.2303
US-$20-FRN-1934-A-Fr.2305
US-$20-FRN-1934-A-Fr.2305
Oahu-cemetery-crematorium&chapel
Oahu-cemetery-crematorium&chapel
C. Brewer's Honolulu plantation mill (1898-1946) located at 'Aiea, O'ahu, ca. 1902
C. Brewer’s Honolulu plantation mill (1898-1946) located at ‘Aiea, O’ahu, ca. 1902

Filed Under: General, Military, Economy Tagged With: Hawaii, Martial Law, Emmons Money, Delos Carleton Emmons, General Orders #51

Images of Old Hawaiʻi

People, places, and events in Hawaiʻi’s past come alive through text and media in “Images of Old Hawaiʻi.” These posts are informal historic summaries presented for personal, non-commercial, and educational purposes.

Info@Hookuleana.com

Connect with Us

  • Email
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Recent Posts

  • Women Warriors
  • Rainbow Plan
  • “Pele’s Grandson”
  • Bahá’í
  • Carriage to Horseless Carriage
  • Fire
  • Ka‘anapali Out Station

Categories

  • Hawaiian Traditions
  • Military
  • Place Names
  • Prominent People
  • Schools
  • Sailing, Shipping & Shipwrecks
  • Economy
  • Voyage of the Thaddeus
  • Mayflower Summaries
  • American Revolution
  • General
  • Ali'i / Chiefs / Governance
  • Buildings
  • Missionaries / Churches / Religious Buildings

Tags

Albatross Al Capone Ane Keohokalole Archibald Campbell Bernice Pauahi Bishop Charles Reed Bishop Downtown Honolulu Eruption Founder's Day George Patton Great Wall of Kuakini Green Sea Turtle Hawaii Hawaii Island Hermes Hilo Holoikauaua Honolulu Isaac Davis James Robinson Kamae Kamaeokalani Kamanawa Kameeiamoku Kamehameha Schools Lalani Village Lava Flow Lelia Byrd Liliuokalani Mao Math Mauna Loa Midway Monk Seal Northwestern Hawaiian Islands Oahu Papahanaumokuakea Marine National Monument Pearl Pualani Mossman Queen Liliuokalani Thomas Jaggar Volcano Waikiki Wake Wisdom

Hoʻokuleana LLC

Hoʻokuleana LLC is a Planning and Consulting firm assisting property owners with Land Use Planning efforts, including Environmental Review, Entitlement Process, Permitting, Community Outreach, etc. We are uniquely positioned to assist you in a variety of needs.

Info@Hookuleana.com

Copyright © 2012-2024 Peter T Young, Hoʻokuleana LLC

 

Loading Comments...