PMG Certifies Exceptionally Rare Nissan Estate Emergency Currency

A pair of remarkably rare Nissan Estate notes issued during the Japanese invasion of British North Borneo were recently submitted to Paper Money Guaranty® (PMG®) for authentication, grading and encapsulation. Nissan Estate notes only circulated for five months and were printed in denominations of 50 Cents, $1, $5, $10 and $25.

Before World War II, the island of Borneo, located in the South West Pacific, was divided between British-controlled territories in the north — including British North Borneo and Sarawak — and territories under the jurisdiction of the Dutch East Indies. In 1942, the Japanese invaded British North Borneo and occupied the city of Tawau on January 24.

In February, during the initial stages of Japanese occupation, the local currency was replaced with emergency notes issued by the Nissan Rubber Estate for use in the Tawau district. However, on July 31, 1942, the emergency notes were replaced with Japanese military invasion banknotes, resulting in Nissan Estate notes being quite rare today.

Of the Nissan Estate denominations, the $10 and $25 are exceedingly rare. K.N. Boon states in “Malaysia, Brunei and Singapore Banknotes and Coins” Eighth Edition that it is possible that only one example of the $10 and $25 notes exist.

Nissan Estate, KNB4, 1942 $10 graded PMG 25 Very Fine (front) Click image to enlarge.

Nissan Estate, KNB4, 1942 $10 graded PMG 25 Very Fine (back) Click image to enlarge.

Nissan Estate, KNB5, 1942 $25 graded PMG 35 Choice Very Fine (front) Click image to enlarge.

Nissan Estate, KNB5, 1942 $25 graded PMG 35 Very Fine (back) Click image to enlarge.

To gain local confidence and acceptance of the emergency issue, many of the designs found on the circulating British North Borneo notes were imitated. The Nissan Estate notes feature a prominent red seal and a stamped Manager’s signature on the front. Not surprisingly, there is no reference to British North Borneo on the emergency issue.

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A 1940 British North Borneo $10 design graded PMG 30 Very Fine (top) compared against the 1942 Nissan Estate $10 design graded PMG 25 Very Fine (bottom) Click image to enlarge.

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A 1940 British North Borneo $10 design graded PMG 30 Very Fine (top) compared against the 1942 Nissan Estate $10 design graded PMG 25 Very Fine (bottom) Click image to enlarge.

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A 1940 British North Borneo $25 design graded PMG 30 Very Fine (top) compared against the 1942 Nissan Estate $25 design graded PMG 35 Very Fine (bottom) Click image to enlarge.

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The back of a 1940 British North Borneo $25 design graded PMG 30 Very Fine (top) compared against a 1942 Nissan Estate $25 design graded PMG 35 Very Fine (bottom) Click image to enlarge.

What was the Nissan Estate, and why would Japanese invaders allow them to issue emergency notes? Most of us know the Nissan name from the present-day Nissan Motor Company Limited of Japan that produces cars. This is the same Nissan conglomerate that owned the Tawau Rubber Estate and was a trusted ally of the Japanese occupation army, so it was chosen to assist with issuing emergency money.

Before the 1900s, Japanese business interests, such as agriculture, timber and fishing, were already established in British North Borneo. By the 1930s, Japanese conglomerates Mitsubishi and Nissan had significant investments in Tawau. The Kuhara Mining Company, which was part of the Nissan conglomerate, acquired a former tobacco estate at Tawau and started rubber cultivation at the Tawau Rubber Estate (often referred to as the Kuhura Estate).

In 1917, 3,000 acres of land were cleared at the Tawau Rubber Estate, a new railway line was built and, in 1920, latex production began. By 1939, Nissan’s Tawau Rubber Estate employed 3,950 workers — by far the largest employer in the Tawau area.

Tawau was occupied by the Japanese for more than three years during World War II but was liberated by troops of the North Australian division in 1945. Eventually, the Japanese in Tawau repatriated to their homeland. The Nissan Estate emergency notes printed for use in Japanese-occupied Tawau are of the utmost rarity and importance, and PMG is honored to have been entrusted with grading them.