MOUNTAIN PROVINCE Emergency Note

The Japanese 14th Army began landing at Lingayen Gulf on December 22, 1941. Gen. Mac-Arthur ordered USAFFE forces to withdraw to Bataan, but the rapid Japanese advance cut the lines of retreat of many units. When the 43rd Infantry crossed the Cordillera Mountains it found Japanese tanks blocking further withdrawal. Col. John P. Horan decided to take the remnants of this unit to Mountain Province to engage in guerilla warfare.

The Japanese advance had also isolated the provincial Government of Bontoc. The provincial treasurer was able to meet financial obligations by issuing checks, but it was obvious the supply of checks would soon run out.

On January 24, 1942 the Provincial Board adopted Resolution No. 5 which established a Currency Committee, in accordance with instructions by President Quezon, with authority to print 300,000 pesos in emergency currency.

The Currency Committee considered of Acting Provincial Governor Roque Perido as Chairman, with Assistant Provincial Treasurer Ambrosio Vallejo and Provincial Auditor Lupo Guzman as members (President Quezon’s instructions had designated the Provincial Treasurer as the member of the committee, but since he was absent from the province he could not serve although his name does appear on the currency.)

The Committee arranged for currency printing by the Mission Press at Saint Mary the virgin Mission in Sagada, with delivery by the end of the month. The first printing was actually amounted to 96,070.35 pesos.

In late January 1942 as the Japanese approached Bontoc, the provincial government moved to Lubuagan. The Japanese occupied Bontoc on February 2, but were forced to withdraw south later.

The provincial government returned to Bontoc and a second printing of currency got underway.

The Provincial Board by Resolution No.6 increase the authorized amount to 500,000 pesos.

With the fall of Bataan the Japanese were able to deploy large forces for mopping up operations and the provincial government once again moved to Lubuagan. The Currency Committee destroyed just under 200,000 pesos currency which had not yet been returned over to the Treasury. The provincial government then evacuated Lubuagan for a remote area.

 Of the 500,000 pesos authorized, 307,902.90 pesos were delivered to the Provincial Treasury. Of this amount 265,756.90 pesos were place in circulation. The balance of 42,146 pesos remained unissued in the Treasury until it was looted during an American bombing attack on March 16, 1945.

In the meantime, Lt. Sam Wilson, supervisor of the pre-surrender printing of currency by the Mindanao Emergency Currency Board, had joined Fertig and told him that this Board also had printed only a part of its authorized amount. Fertig promptly radioed MacArthur of his intentions to reconstitute this Board with new members (original members had surrendered) and resume printing currency under the authority previously granted by President Quezon. MacArthur passed the message on to President Quezon in Washington, who promptly granted his approval. Thus, the second Mindanao Emergency Currency Board came into being.

The new Board consisted of Judge Florentino Saguin as Chairman, with Misamis Occidental Provincial Treasurer Filomena D. Pacana and Provincial Auditor Ireneo Barbasa as Members.

Maj. Sam Wilson (guerilla rank) was assigned to get printing operations underway. Wood border cuts were made for the face of the 2 Pesos note, and for both face and back of the 10 and 20 Pesos notes. The 5 Pesos notes were printed from the same border cuts previously made for the Misamis Occidental printing (#S578). Other denominations were printed entirely from metal type.

Printing operations began on April 5, 1943 at the Rosito Z. Bacarro press in the barrio of Matugas, Municipality of Jiminez, Misamis Occidental. On June 26, the Japanese invaded Misamis Occidental. At the press site thousands of pesos in partly printed currency were burned. The presses were dismantled and hidden in the hills along with printing supplies. At Oroquieta, Treasurer Pacana hastily packed 702,619.30 pesos into sacks and evacuated to the hills.

Driven out of Misamis Occidental, Col. Fertig relocated his headquarters in the barrio Liangan, Municipality of Kolumbugan, Lanao Province. As currency supplies dwindled, Fertig requested that the printing be done in Australia. MacArthur rejected the proposal. Printing supplies, yes; printing currency, no.

Maj. Sam Wilson was assigned the difficult task of getting the presses to Liangan. It took ten days to move the heavy presses from their hiding place in the hills down to the coast. THey were moved by the banca across Iligan Bay at night to avoid Japanese naval patrols. Printing resumed at Liangan on September 6 and ended November 1, 1943 when supplies ran out.

As Japanese activity increased in the Lanao area, Fertig moved his headquarters to Esperanza in Agusan Province. The presses were moved by water transport along the coast and then up the Agusan River.

In the meantime the cargo submarine USS NARWHAL had delivered 90 tons of supplies at Nasipit. Among the supplies were 30 boxes of paper, 27 cans of ink and dryer and 84 metal plates made in Australia for printing currency.

Printing resumed at Esperanza on December 13, 1943 using the metal plates. As no metal plates had been made for either the 5 Centavos or 20 Pesos denominations, these were printed from the same metal type and wood border cuts as previously. Printing ended on January 23, 1944 when supplies ran out.

Once again stepped up Japanese military activity necessitated moving the presses to a safer area. In early February they were moved up the river to Loreto, Agusan. Printing finally got underway on March 18, 1944 after more supplies were delivered by USS NARWHAL.

The Japanese garrisoned Butuan, Agusan, using it as a base of operations and almost daily planes bombed the towns along the river. Esperanza was reduced to rubble, and on July 5, 1944 Loreto was bombed. As further attacks were expected, the presses were dismantled and hidden, and press personnel evacuated to a safer area.

It was October before the Japanese attack abated enough to allow the press personnel to return to Loreto. Printing resumed on November 4, 1944 but was halted in mid-November on instructions from Col. Fertig.

Immediately after printing had ceased at Loreto in July, Sam WIlson and two printing technicians left there carrying with them some of the printing plates. They hiked over mountains to the coast of Misamis Occidental where they obtained transportation by banca along the coast to Dipolog, Zamboanga. The trip took the greater part of two months.

At Dipolog, arrangements were made for use of a small press owned by the Rev. Angel Soto. Printing resumed at the barrio of Tingkugas on September 14 and continued until October 6, 1944 when paper supplies ran out.

It was not until February 27, 1945 after new paper supplies had been brought in by submarine, that printing operations were resumed at the barrio Estaka. On March 8, 1945 the first American liberation forces landed at the guerrilla-held airfield at Dipolog. Military operations placed the press site in jeopardy, so printing was stopped to permit the press to be moved to a safer location.

Printing resumed at the barrio of Calamba, Municipality of Plaridel, Misamis Occidental on April 1, 1945. Printing operations ceased on April 22, on order of Col. Fertig, thus ending the printing of currency by the second Mindanao Emergency Currency Board.

Meanwhile, back at Loreto in Agusan Province, printing operations had resumed on January 2, 1945. As there was only a small stock of paper on hand it was soon exhausted and printing ended on January 5. This printing is mentioned last, as these were only notes dated Series 1945.

A total of 23,613,415 pesos was printed by the second Mindanao Emergency Currency Board.