What is a Military Payment Certificate?

Question

Is this like a check that Military people get, do they still use them? Why do they have separate money?

Answer 1

Military Payment Certificate

Military Payment Certificates, or MPC, were used from the end of World War II until the end of the Vietnam War, between the years 1946 and 1973. MPC's utilized layers of line lithography to create colorful banknotes that could be produced cheaply. Fifteen series of MPC's were created but only 13 series were issued.


History of MPC
Military Payment Certificates (MPC) evolved from Allied Military Currency as a response to the large amounts of US Dollars circulating in post-World War II Europe due to American servicemen. The local citizens did not trust local currencies as the fate of their governments was unclear. Therefore preferring a stable currency, dollars, they often accepted payment in dollars for less than the accepted conversion rates. Obviously dollars became more favorable, inflating the local currencies and thwarting plans to stabilize the economies. Contributing to this problem was the fact that though troops were being paid in the local currency they could convert an unlimited amount to dollars at the government set conversion rate, which was much more favorable to the GIs than the market rate. From this a black market developed where the servicemen could utilize the favorable exchange rate.

To combat this the US military devised the MPC program. MPC's were paper money denominated in US Dollars in amounts of 5 cents, 10 cents, 25 cents, 50 cents, 1 dollar, 5 dollars, 10 dollars, and starting in 1968 20 dollars. MPC's were fully convertible to US dollars upon leaving the combat zone ( a designated MPC zone) and convertible to local currencies when going on leave (but not vice-versa), and were illegal for unauthorized personnel to possess, thus, in theory, eliminating US dollars from local economies. Although actual greenbacks were not circulating, many local merchants accepted MPC on par with US dollars, as they knew they could use them on the black market. This was especially evident during the Vietnam War when the MPC program was at its zenith. To prevent MPC from being used as a primary currency in the host country, thereby destroying the local currency value and economy, MPC banknote style would change. Many veterans can recount a conversion day or C-Day.

C-day in Vietnam was always classified, never pre-announced. On C-day, soldiers would be restriced to base, preventing GIs from loading up on old MPC from local bars, brothels, bargirls and other black market people and unable to help these Vietnamese convert to the newer style MPC. Vietnamese were not allowed to convert and frequently lost so much old, worthless MPC, they would "arrange" to have the nearest U.S. base rocketed the next night.

To illustrate the Vietnam war MPC cycle, in mid 1970, a GI would have his family mail him a U.S. hundred dollar bill, take it "downtown" and convert it to 180 dollars MPC, then change MPC to S.Vietnamese piasters at double the legal rate. He then could have a fun day shopping, bar hopping, or a full service massage, paying in very low cost piasters.

To continue the MPC cycle, that 100 dollar note would find its way to high level Vietnamese government officials, especially the corrupt ones, who had access to out of country travel, where the U.S currency could be deposited safely (Bangkok,Taipei, or Hong Kong). Rumors also suggested that this hard currency (u.s. dollars), would find its way to Hanoi, then to Europe.

There were 13 series of MPC issued between 1946 and 1973, with varied designs often compared to Monopoly (game) money due to their colors. After the Vietnam War MPC was never again issued, and lay dormant until the late 90's when it was replaced by a Stored Value Card system.

Answer 2

The person above said it all. However the United States is not the only country to use MPC's. The United kingdom did also and there maybe more. Getting info from Wikipedia is okay under some circumstances but I notice they are not always right when it comes to coins and notes, or do not have the story correct. There section on Chinese cash coins needs lots of help, this being the case others may need so also. Now collecting MPC's is a specialty that some paper money collectors get into. A dealer is selling replica MPC's all 107 for $25 Dick Freyser 154 Village way, Clarsville, TN 37043. there is also a book out there in it's forth edition. Cost is $54 from BNR Press 132 East second St., Port Clinton OH. 43452. There is a Monthly magazine called Bank Note Reporter that cover paper money. Go to www.banknotereporter.com When it comes to coins and currency as well as tokens and medals I like going direct to the horses mouth, not an encyclopedia. I have yet to me an encyclopedia that collected anything but dust.

Answer 3

Nothing unless it is the current issue and in the area theater.