Military Payment Certificates By Eric Kibbey
Many newly enlisted soldiers during the Vietnam War upon a long flight from home and entering a foreign country were quickly taken to a briefing room and had all their money converted into a currency that could be used in-country. This currency was called MPC’s Military Payment Certificates. MPC was for use only for on base transactions. Any payments made to locals was to be only in South Vietnamese currency which could be purchased at the finance office at the official exchange rate. GIs knew that they could get a better rate at the black market downtown, it was however illegal to change money downtown and highly punishable.
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MPCs were paper money and used as currency on base. Different series were issued yearly. These notes were very colorful and beautiful. Many soldiers sent home complete sets of MPCs to be collected and remembered. For example of some of the imagery on the notes the series 681 which the first two digits indicate the year 1968 and the third digit “1” indicated the first issue for that year; had submarines, astronauts, the Thunderbirds in F-100s, tanks, helicopters and B-52G aircraft.
Vietnam was not the first time MPCs were issued. The first series of MPC was the 461 series issued in February 1946, shortly after WWII. Other military related currency similar to MPC are Allied Military Currency (AMC), British Military Currency (BMA and BAFSV) and there are other emergency notes of WWII. One form of emergency note that is familiar to many US currency collectors is the US Federal Reserve note with the Hawaii overprint on it.
There are 90 notes of MPC issued between 1946 and 1973 all of which were issued in quantities greater than 1.5 million. MPCs have been issued in thirteen series since September 1946 and were totally withdrawn in November 1973. Each series was issued to pay troops overseas in order to help control the black market. Series were exchanged one for another without notice after which the replaced series was worthless. This accounts for the scarcity of many of the issues, since few soldiers were wiling to hold a $5 or $10 certificate for a collection.
The Pacific command set the date for C day (Conversion day) September 30, 1946. They introduced the type A yen Series 100 on July 19, 1946. “Type A yen was successful immediately; the conversion of black market profits into dollar credits had came to an abrupt end”. All together five printing companies were used to produce MPCs including the Bureau of Engraving and Printing. Series 591 was the last one printed by contractors. Thereafter, all MPC was printed internally by the Bureau of Engraving and Printing. Conversion day in Europe was September 16, 1946. On September 15th all monetary business was suspended, the following day, C-Day men began turning in their funds to personnel officers in exchange for military payment certificates, Series 461. In Germany, Great Britain, Austria, Italy, Belgium, Holland, Denmark, Luxembourg, Trieste, France, Switzerland, and North Africa, all personnel, military and civilian alike, exchanged their legitimately acquired foreign currencies for scrip. Approximately $59,000,000 in francs and marks were converted into scrip in France and Germany on C day.
Just like there are replacement notes in our US paper money today, there were MPC replacement certificates. Instead of being distinguished with a star after the serial number, MPC replacement notes only have one letter before the serial number instead of two bookending the serial number. There were also checks issued payable only in MPC not dollars. A collector may collect all issues and all varieties or a few representative types. Over 5000 replacement serial numbers have been recorded. Only one of the classic ninety pieces has not been recorded (Series 651 $5).
The use of military payment certificates continued through 1973, when Series 651 was retired in Korea. MPCs have been issued in at least twenty one countries since 1946.
Although MPCs state that they are only to be used by US authorized personnel it has been discovered that other allied use of MPCs occurred. For example Canadian veterans confirmed that Canadian forces used MPC in Germany.
MPCs are printed by lithography rather than intaglio methods (the technology used for most US paper money). MPCs are printed on planchette paper, that is, paper with small discs of cored paper imbedded at random throughout the paper. This is a counterfeit detection mechanism. Many counterfeits have dots printed on them, but a genuine planchette adds thickness to the note, and makes the planchette appear dark when held up against a light. Ink selection is a major anti counterfeiting device used in printing MPCs . Ink sensitive to ultraviolet light is a daily common security device used by many countries today, but it was new when first used for MPC printing. This innovation was released on series 461 in 1946.
All of this information was acquired from the book titled Comprehensive Catalog of Military Payment Certificates by Fred Schwan and Larry Smulczenski. Both Fred and Larry have spent decades studying military numismatics, and have contributed greatly to the hobby. Since the year 2000 Fred has annually held what is called MPC Fest in Port Clinton Ohio, aside for a couple years during COVID where the Fest was conducted virtually. My wife and I have been fortunate to attend the last two Fests and look forward to many more. Please visit militarypaymentcertificates.us for more information on MPC Fest. The next planned mini MPC Fest will be held congruent with the ANA’s Worlds Fair of Money this year in Oklahoma City.