Fr 2305 20 Dollar Hawaii Note

With all the interest in the “Greatest Generation,” parents and grandparents who saved western democracies from fascists and dictators by winning World War II, it should be no surprise that tangible reminders of that period are welcome collectables for today’s enthusiast. The Fr. 2305 $20 Hawaii Note fits this bill.

Specifications

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Background
This emergency note was issued in the wake of the surprise Japanese attack on Pearl Harbor Dec. 7, 1941, which precipitated U.S. involvement in the war. The day after the sneak attack, President Franklin D. Roosevelt called those events a “day that will live in infamy” in his message to his fellow Americans. The Japanese had not only attacked the American naval and military bases in the Hawaiian Islands, but also Malaya, Hong Kong, Guam, the Philippine Islands, Wake Island and Midway Island, FDR reminded his countrymen. He asked for and quickly received Congress’ declaration of a state of war with the Japanese Empire.

Marshalling our country’s war might affected virtually all citizens of that “Greatest Generation,” with military and civilian service, rationing, long separations from loved ones, and unprecedented demands on the public purse. These Hawaii emergency notes remain tangible testaments of the sacrifices that generation made for our freedom.

History
The Territory of Hawaii, a string of islands in mid-Pacific more than 2200 miles from the west coast, was greatly affected in the months following the attack. This included mail censorship, air raid shelters, curfews, blackouts, search lights, distribution of gas masks, and tent cities for the influx of war workers. Currency controls were also enacted for Hawaii.

Consultations among the War Department, Navy Department, Department of Interior, Treasury Department and local civilian and military authorities quickly determined that it was a military necessity to secure the stock of currency in the local economy.

For efficiency, it was decided that regular San Francisco district Federal Reserve Notes specially marked would be used since Hawaii was within the San Francisco Federal Reserve Bank District 12. Denominations were $5, $10, and $20. Since there were no $1 Federal Reserve Notes, Series 1934 and 1934A $1 Silver Certificates are also part of the Hawaii note series. To distinguish these notes HAWAII was overprinted in black at left and right on face and a large black HAWAII was imprinted on the note’s back. Additionally, the Treasury Seal and serial numbers were printed in brown. The portrait on the face is President Andrew Jackson, while the back depicts the White House, conventions which persist down to the present. These “Hawaiian Series” notes were introduced into the Hawaiian Islands and portions of the Pacific Theater of Operations so they could be demonetized if a large quantity were to fall into enemy hands without this recall adversely affecting the country’s currency supply as a whole. On June 25, 1942, Hawaii Governor J.B. Poindexter issued “Regulations Relating to Currency” which provided that after July 15, 1942, only the specially marked Hawaii Series notes could be used on the islands without a special license. Penalties for not complying were stiff with fines up to $5,000 and/or imprisonment for up to five years upon conviction of violating these regulations. Military Governor Brigadier General Thomas H. Green issued General Order 118, also on June 25th, in parallel with the elected civilian governor’s edict. An office of Foreign Funds Control was established to implement these measures. The Federal Reserve issued Circular 2462 on July 10th to inform bankers of the new state of affairs. Apparently not enough of the new notes were available to convert all the currency in such a short period of time. These regulations were amended July 29, 1942, to extend the deadline to August 15th. A Federal Reserve Bank circular of August 13, 1942, also contains these provisions. According to BG Thomas H. Green, executive to the military governor “As I see it this program is an additional step in the defense of Hawaii, and it seems a logical corollary to the other defensive measures which have been and are being undertaken. One of its greatest merits is that the distinctive markings will make the currency easily identifiable and readily accessible in the event of emergency.”

The Bureau of Engraving and Printing received an order to print the notes on June 8, 1942, and immediately commenced doing so. The first delivery of Series 1934 $20 Hawaii Series notes occurred that very day. The last delivery of Series 1934A HAWAII $20 notes happened on July 18, 1944. On Oct. 21, 1944, the Treasury Department lifted its regulations on currency circulation in the Hawaiian Islands.

Collecting
Approximately 11.3 million Hawaii Federal Reserve Notes were issued in two series, Series 1934 and Series 1934 A.  All notes used in Hawaii are from the L-A and L-* blocks. All have facsimile signatures of U.S. Treasurer W.A. Julian and Secretary of the Treasury Henry Morgenthau Jr. The government’s intent was to confine circulation of the emergency HAWAII series notes to the offshore theater of operations, but it proved impractical to do so. Passage of military and civilian workers to and from the mainland brought notes back to the continental 48 states. As early as Dec. 29, 1942, a Federal Reserve circular reminded bankers “we will exchange regular series United States currency for United States currency Hawaii series.” Bankers on the mainland should freely receive the emergency notes in exchange for regular U.S. currency, the Fed said. Hawaii notes were favorites for use as “short snorters,” which are autographed notes signed by various persons with personal or military ties. Often a series of such notes is taped or pinned together in a long string.

It still is possible to acquire a well-circulated Hawaii $20 note with a lot of history for under $100. Higher grade notes bring $500-$600 range. A Premium Quality Gem New 1934A brought nearly $3,500 at auction. Generally, however Series 1934 notes bring about double what Series 1934A notes command for similar grades. Only 52,000 Star notes were issued and high grade replacement notes catalog in the four and five figures. All HAWAII notes remain legal tender today.

A second series of World War II emergency notes was issued for use in the European Theater. These were $1, $5, and $10 Silver Certificates with yellow Treasury Seals. Since these notes were first used in North Africa that are generally known as North Africa notes.