MPCB (Ho-2)

HISTORY OF PHILIPPINE MONEY
THE PRE-HISPANIC ERA
Long before the Spaniards came to the Philippines, trade among the early Filipinos and with
traders from the neighboring lands like China, Java, Borneo, and Thailand was conducted
through barter. The inconvenience of the barter system led to the adoption of a specific
medium of exchange – the cowry shells. Cowries produced in gold, jade, quartz and wood
became the most common and acceptable form of money through many centuries.
Since the Philippines is naturally rich in gold, it was used in ancient times for barter rings,
personal adornment, jewelry, and the first local form of coinage called Piloncitos. These had
a flat base that bore an embossed inscription of the letters “MA” or “M” (meaning Ma-I or
Ma-Yi, the ancient name of the Philippines) similar to the Javanese script of the 11th
century. It is believed that this inscription was the name by which the Philippines was known
to Chinese traders during the pre-Spanish time.
THE SPANISH ERA 1521-1897
The cobs or macuquinas of colonial mints were the earliest coins brought in by the galleons
from Mexico and other Spanish colonies. These silver coins usually bore a cross on one
side and the Spanish royal coat-of-arms on the other.
The Spanish dos mundos were circulated extensively not only in the Philippines but the
world over from 1732-1772. Treasured for its beauty of design, the coin features twin
crowned globes representing Spanish rule over the Old and the New World, hence the
name “two worlds.” It is also known as the Mexican Pillar Dollar or the Columnarias
due to the two columns flanking the globes.
Due to the shortage of fractional coins, the barrillas, were struck in the Philippines as
ordered by the Royalty of Spain. The barrilla, a crude bronze or copper coin worth about
one centavo, was the first coin struck in the country. The Filipino term “barya”, referring to
small change, had its origin in barrilla.
Coins from other Spanish colonies also reached the Philippines and were counterstamped
to legalize their circulation in the country. Gold coins with the portrait of Queen Isabela were
minted in Manila. Silver pesos with the profile of young Alfonso XIII were the last coins
minted in Spain. The pesos fuertes, issued by the country’s first bank, the El Banco
Espanol Filipino de Isabel II, were the first paper money circulated in the country.
Isabelinas were first gold and silver coins minted in the Philippines in 1861 by Casa de
Moneda de Manila, the country’s minting plant during the Spanish era. These coins marked
the first time in history that the country’s name “Filipinas” appeared on its coinage.
From 1880-1885, the Casa de Momeda de Manila issued gold and silver coins bearing he
bust of Alfonso XII who was installed on the throne of Spain in 1874. The gold Alfonsinos
greatly resembled their Spanish counterparts except for the values expressed in pesos.
The Spanish-American war caused the abrupt termination of Alfonso's rule over the
Philippines. As a result, the 1897 large-peso coins were circulated only until 1904. U.S. Civil
Governor William H. Taft declared the large peso no longer legal tender after September 30
of that year.
Alfonsos is the first silver peso minted exclusively for the Philippines bore the bust of
Alfonso XIII and the words islas Filipinas. Minted in Madrid, this remained in circulation and
were legal tender in the islands until 1904.
REVOLUTIONARY PERIOD 1898-1899
Asserting its independence, the Philippine Republic of 1898 under General Emilio
Aguinaldo issued its own coins and paper currency backed by the country’s natural
resources. At the Malolos arsenal, two types of two-centavo copper coins were struck. One
peso and five peso revolutionary notes printed as Republika Filipina Papel Moneda de Un
Peso and Cinco Pesos were freely circulated. These were handsigned by Pedro Paterno,
Mariano Limjap and Telesforo Chuidian. With the surrender of General Aguinaldo to the
Americans, the currencies were withdrawn from circulation and declared illegal currency.
AMERICAN PERIOD 1900-1941

With the coming of the Americans 1898, modern banking, currency and credit systems were
instituted making the Philippines one of the most prosperous countries in East Asia. The
Americans instituted a monetary system for the Philippine based on gold and pegged the
Philippine peso to the American dollar at the ratio of 2:1. The US Congress approved the
Coinage Act for the Philippines in 1903.
The coins issued under the system bore the designs of Filipino engraver and artist, Melecio
Figueroa. Coins in denomination of one-half centavo to one peso were minted. The
renaming of El Banco Espanol Filipino to Bank of the Philippine Islands in 1912 paved the
way for the use of English from Spanish in all notes and coins issued up to 1933. Beginning
May 1918, treasury certificates replaced the silver certificates series, and a one-peso note
was added.
The Japanese Occupation

1942-1945
The outbreak of World War II caused serious disturbances in the Philippine monetary
system. Two kinds of notes circulated in the country during this period. The Japanese
Occupation Forces issued war notes in high denominations. These war notes had no back
up reserves, thus, Filipinos dubbed it “Mickey Mouse” money. During the worst inflation in
Philippine history, Filipinos would go to the market laden with bayongs of Mickey Mouse
bills, since one duck egg cost 75 pesos, and a box of matches more than 100 pesos.
"Mickey Mouse money" is a colloquial term that has been used in the Philippines to refer to
the Japanese yen, which was used as a secondary currency during the Japanese
occupation of the Philippines during World War II. The currency became worthless due to
inflation caused by the war, and the nickname "Mickey Mouse money" was used to convey
the idea that the currency was not taken seriously and had little value. The term is thought
to have originated because of the similarity in appearance between the image of Mickey
Mouse and the images of animals and cartoon characters found on the yen.
On the other hand, Guerrilla Notes or Resistance Currencies which are in low
denominations, were issued by different provinces and, in some instances, municipalities
through their local currency boards to show resistance against the Japanese occupation.
The puppet state under José P. Laurel outlawed possession of guerrilla currency and
declared a monopoly on the issuance of money and anyone found to possess guerrilla
notes could be arrested or even executed. Because of the fiat nature of the currency, the
Philippine economy felt the effects of hyperinflation.
THE PHILIPPINE REPUBLIC
A nation in command of its destiny is the message reflected in the evolution of Philippine
money under the Philippine Republic. Having gained independence from the United States
following the end of World War II, the country used as currency old treasury certificates
overprinted with the word “Victory”.
With the establishment of the Central Bank of the Philippines in 1949, the first currencies
issued were the English series notes printed by the Thomas de la Rue & Co., Ltd. in
England and the coins minted at the US Bureau of Mint. The “Filipinization” of the Republic
coins and notes began in the late 60’s and is carried through to the present. In the 70’s, the
Ang Bagong Lipunan (ABL) series notes were circulated, which were printed at the Security
Printing Plant starting 1978. A new wave of change swept through the Philippine coinage
system with the Flora and Fauna Coin Series initially issued in 1983. The New Design
Series of banknotes issued in 1985 replaced the ABL series. Ten years later, a new set of
coins and notes were issued carrying the logo of the Bangko Sentral ng Pilipinas.

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MPCB (Ho-2)

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HISTORY OF PHILIPPINE MONEY

THE PRE-HISPANIC ERA

THE SPANISH ERA 1521-1897

REVOLUTIONARY PERIOD 1898-1899

AMERICAN PERIOD 1900-1941

The Japanese Occupation

THE PHILIPPINE REPUBLIC

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