U.S. Philippine Currency

After the Philippine–American War, which followed the Spanish–American War and the cession of the Philippines to the United States under the Treaty of Paris of 1898, the U.S. inherited the archipelago’s existing monetary system. At the time, the silver standard was still in effect, and a wide variety of foreign coins circulated throughout the country.

​

Due to ongoing challenges with the monetary system—including fluctuating exchange rates and inconsistent coinage—the United States introduced a new system based on the gold standard, aligning it with U.S. monetary policy. This transition was formalized in 1903 with the passage of the Philippine Coinage Act by the U.S. Congress, largely based on the recommendations of Charles Arthur Conant, the act’s principal proponent.

​

This reform led to the minting of a new series of coins for the Philippines in denominations of ½, 1, 5, 10, 20, and 50 centavos, as well as 1 peso—with 1 peso pegged at half a U.S. dollar. In addition, new paper currency was introduced, including silver certificates and treasury certificates.

​

Coin production began in 1903 at U.S. mints, notably in San Francisco and Philadelphia. In 1920, the old Real Casa de la Moneda y Timbre de Manila was reopened and resumed local coin production until 1941, when it was destroyed during World War II.

​

When the Philippines became a Commonwealth in 1935, the transition was reflected in coinage starting in 1937, when the denominations were adjusted to include only 1, 5, 10, 20, and 50 centavos. 

​

Banknote production, meanwhile, was carried out by various Philippine banks beginning in 1904 and continued until the end of the war. With the entry of the United States into World War II in 1941 following the Japanese attack on Pearl Harbor, the Philippines—then a U.S. Commonwealth—became the next immediate target. Within hours of the attack on Hawaii, Japanese forces launched their advance toward the Philippines and soon neared Manila, the capital city.

​

With the fall of Manila drawing near, one of the Americans’ top priorities was to ensure that the Philippine Treasury would not fall into enemy hands. The treasury's contents—including banknotes, coins, and bullion—were moved to Corregidor Island. A portion was successfully smuggled out of the Philippines; the remaining paper currency was burned, and large quantities of coins were dumped into Caballo Bay to prevent Japanese capture.

​

Many of the coins recovered after the war, now valued as collectible relics, show signs of corrosion from prolonged exposure to saltwater. Interestingly, some of the coins recovered by Japanese forces were melted down and repurposed into medals, which were awarded to Japanese soldiers as souvenirs of their campaign.