Public Act No. 2612 was enacted on February 4, 1916, an act creating the Philippine National Bank
(PNB), and as amended by
Public Act No. 2747 of 1918 and Public Act No. 2938 of 1921. In May 1916 it was incorporated, and formally established on July 22, 1916 with Henry Parker Willis as its first president.
All Philippine National Bank (PNB) Circulating Note were printed by U.S. Bureau of Engraving and Printing. Replacement Note has a “Star Symbol” Prefix similar to the United States currency replacement system, under the authority that was granted on January 29, 1919.
As per Government Record, all Philippine National Bank (PNB) Circulating Note were legally issued initially. A Total of ₱ 81,155,000.00 were issued. On December 8, 1941, Japan launched an attack on the Philippines, ten hours after the attack on Pearl Harbor. Two days after, on December 10, 1941, Japanese forces landed on Luzon, and eventually capturing Manila on January 2, 1942. Philippine National Bank (PNB) briefly ceased operations in January 1942, but reopened the next month under the supervision of Japanese authorities, in the process capturing ₱7,410,000.00 Philippine National Bank Circulating Note, inclusive of the following denomination, 5 Pesos, 10 Pesos, 20 Pesos and 50 Pesos. Serial number and breakdown is enumerated in Republic Act No. 211. This captured banknotes were eventually re-issued by the Japanese military. All Japanese Military re-issued Philippine National Bank (PNB) Circulating Note were declared illegal by virtue of Republic Act No. 211.
At the beginning of the Japanese occupation, American Issued money is allowed for circulation, but later, Japanese authorities outlawed it, including guerilla currencies, those caught exchanging with it were taken to Fort Santiago and punished for committing a hostile act, thus the 50 Pesos Philippine National Bank (PNB) Circulating Note in particular, eventually ended up in Mindanao, being sold by Moros at a bargain of around 5 pesos each.
All Philippine National Bank (PNB) Circulating Note legally issued, except those issued illegally by the Japanese, were withdrawn from circulation pursuant to Republic Act No. 211 which was approved on June 1, 1948 and allowing exchange with in a period of one year after its approval, and considering it demonetized starting June 1, 1949. Any person holding or possessing in any capacity whatsoever any Philippine National Bank (PNB) circulating note which bears any of the serial numbers mentioned in section one of this Act or which shall be certified to by the Secretary of Finance as having been illegally issued, shall present them for registration and deposit to the Treasurer of the Philippines or to any provincial, city or municipal treasurer, within six months after the approval of this Act. It shall be the duty of the Treasurer of the Philippines and of all provincial, city and municipal treasurers to accept all such Philippine National Bank (PNB) circulating notes illegally issued, to register and safely keep the same and to issue therefor a certificate in such form as may be devised by the Treasurer of the Philippines, stating the name and address of the person registering said notes, the serial number thereof, their denomination, the amount of each denomination, and the total amount. Executive Order No. 188 signed on December 6, 1948, Executive Order No. 202 signed on February 4, 1949 and Executive Order No. 211 signed on April 7, 1949, all signed by President Elpidio Quirino, extending the period for the registration and deposit of Philippine National Bank (PNB) circulating notes illegally issued, and those which were certified to by the Secretary of Finance as having been illegally issued, up to May 31, 1949. Due to clamor of the people, Republic Act No. 734 was approved on June 18, 1952 and Republic Act No. 831 was approved on August 14, 1952, authorizing the redemption of the Philippine National Bank (PNB) Circulating Notes declared to have been illegally issued and registered and deposited with the treasurer of the Philippines or with any provincial, city or municipal treasurer under the provisions of Republic Act No. 211 , Executive Order No. 188, Executive Order No. 202 and Executive Order No. 211