B yen
Encyclopedia
was a colloquial term used to refer to a form of military scrip
used in post-war
US-Occupied Okinawa from July 1948 to September 1958. Officially, it was called .
began, following the end of World War II
, the US military used a separate scrip called "A type yen" while "B type yen" were only used by the local civilians. In the brief time between the 1945 battle of Okinawa
and the beginning of the US occupation, the islands went from a currency-free system, relying upon barter and distributions of supplies from the authorities, to the reintroduction of currency with the B yen, the introduction of the new Japanese yen (both "new yen" and "B yen" being used concurrently for a time) and then the establishment of the B yen as the only legal currency.
Beginning in 1948, the A type yen was deprecated, and B type yen came to be used by military and civilians alike.
Though the rest of Occupied Japan
continued to use regular Japanese yen throughout the Occupation, military scrip was introduced in Okinawa because, even at that time, the US military government
intended to continue occupation of Okinawa long after ending it in the Home Islands
. Steps were taken to prevent inflation
which would have resulted from the illegal influx of regular yen from the Home Islands, and once the economy in Okinawa was considered stable enough, the B yen was done away with, and the US dollar brought into use.
An announcement was made by the office of Lt. Gen. Donald Prentice Booth
(High Commissioner of the Ryukyu Islands and Commanding General of the U.S. Army on the Islands), and as of September 16, 1958, the B yen was replaced with the US dollar, at an exchange rate of 120 B yen to the dollar. The exchange rate at the time for the Japanese yen used in "mainland" Japan was 360 yen to US$1. This was done, in part, in order to encourage foreign investment by aligning Okinawa's economy with an international standard, though it is often said to have also contributed significantly to the dependence of Okinawa's economy upon the US, and the US military bases located there.
Professor Michiko Iha of the University of the Ryukyus
has argued that the B yen was part of a scheme by the occupying authorities to keep the dollar strong and yen weak, in order to more cheaply construct and maintain military bases.
Scrip
Scrip is an American term for any substitute for currency which is not legal tender and is often a form of credit. Scrips were created as company payment of employees and also as a means of payment in times where regular money is unavailable, such as remote coal towns, military bases, ships on long...
used in post-war
Post-war
A post-war period or postwar period is the interval immediately following the ending of a war and enduring as long as war does not resume. A post-war period can become an interwar period or interbellum when a war between the same parties resumes at a later date...
US-Occupied Okinawa from July 1948 to September 1958. Officially, it was called .
Currency
The B yen bills were of a blue or green color, and came in eight different denominations.History
The designation "B type yen" derives from the fact that, for a time after the US occupation of Okinawa PrefectureOkinawa Prefecture
is one of Japan's southern prefectures. It consists of hundreds of the Ryukyu Islands in a chain over long, which extends southwest from Kyūshū to Taiwan. Okinawa's capital, Naha, is located in the southern part of Okinawa Island...
began, following the end of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the US military used a separate scrip called "A type yen" while "B type yen" were only used by the local civilians. In the brief time between the 1945 battle of Okinawa
Battle of Okinawa
The Battle of Okinawa, codenamed Operation Iceberg, was fought on the Ryukyu Islands of Okinawa and was the largest amphibious assault in the Pacific War of World War II. The 82-day-long battle lasted from early April until mid-June 1945...
and the beginning of the US occupation, the islands went from a currency-free system, relying upon barter and distributions of supplies from the authorities, to the reintroduction of currency with the B yen, the introduction of the new Japanese yen (both "new yen" and "B yen" being used concurrently for a time) and then the establishment of the B yen as the only legal currency.
Beginning in 1948, the A type yen was deprecated, and B type yen came to be used by military and civilians alike.
Though the rest of Occupied Japan
Occupied Japan
At the end of World War II, Japan was occupied by the Allied Powers, led by the United States with contributions also from Australia, India, New Zealand and the United Kingdom. This foreign presence marked the first time in its history that the island nation had been occupied by a foreign power...
continued to use regular Japanese yen throughout the Occupation, military scrip was introduced in Okinawa because, even at that time, the US military government
SCAP
SCAP may refer to:* Société de Constructions Automobiles* Security Content Automation Protocol* Separation of Content and Presentation* Shackled City Adventure Path* SREBP cleavage activating protein...
intended to continue occupation of Okinawa long after ending it in the Home Islands
Japanese Archipelago
The , which forms the country of Japan, extends roughly from northeast to southwest along the northeastern coast of the Eurasia mainland, washing upon the northwestern shores of the Pacific Ocean...
. Steps were taken to prevent inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
which would have resulted from the illegal influx of regular yen from the Home Islands, and once the economy in Okinawa was considered stable enough, the B yen was done away with, and the US dollar brought into use.
An announcement was made by the office of Lt. Gen. Donald Prentice Booth
Donald Prentice Booth
Donald Prentice Booth was a Lieutenant General in the United States Army. During World War II he was the US Army's youngest theater commander. After World War II he was known for his commands of the 28th Infantry Division, the 9th Infantry Division and the Fourth United States Army...
(High Commissioner of the Ryukyu Islands and Commanding General of the U.S. Army on the Islands), and as of September 16, 1958, the B yen was replaced with the US dollar, at an exchange rate of 120 B yen to the dollar. The exchange rate at the time for the Japanese yen used in "mainland" Japan was 360 yen to US$1. This was done, in part, in order to encourage foreign investment by aligning Okinawa's economy with an international standard, though it is often said to have also contributed significantly to the dependence of Okinawa's economy upon the US, and the US military bases located there.
Professor Michiko Iha of the University of the Ryukyus
University of the Ryukyus
The , abbreviated to Ryūdai , is a national university of Japan. It is located in the town of Nishihara on Okinawa Honto in Okinawa Prefecture. There are also campuses in Nakagusuku and Ginowan. It is the westernmost national university of Japan and the largest public university in Okinawa Prefecture...
has argued that the B yen was part of a scheme by the occupying authorities to keep the dollar strong and yen weak, in order to more cheaply construct and maintain military bases.