JAPAN

Bond

Premium Patriotic Bonds

5 Yen

(1940)

FRONT

・此ノ債券ハ臨時資金調整法ノ規定ニ基キ發行シタルモノニシテ債券賣出ニ依ル收入金ハ大藏省預金部ニ於テ運用スルモノナリ

（This bond was issued in accordance with the provisions of the Temporary Funds Adjustment Act, and the proceeds from its sale were to be managed by the Deposit Bureau of the Ministry of Finance）

【Premium Patriotic Bonds (War-Time Lottery Bonds)】

　Premium Patriotic Bonds were Japanese government bonds issued during the wartime period to raise funds for military expenditures. Unlike ordinary government bonds that paid regular interest, these bonds offered holders the chance to win cash premiums through periodic lottery drawings.

Background

　Following the outbreak of the Second Sino-Japanese War in 1937, the Japanese government faced rapidly increasing military expenses. To secure the necessary funds, the government encouraged citizens to invest their savings in government securities. Premium Patriotic Bonds were introduced as part of this effort.

Characteristics

1. Affordable Face Value

　The bonds were issued in relatively small denominations, making them accessible to ordinary households and even children.

2. Lottery Premiums

　The most distinctive feature of these bonds was the premium lottery system. Bondholders could participate in periodic drawings, with winners receiving cash prizes far exceeding the bond's face value.

　Typical prizes included:

• First Prize: 5,000 yen

• Second Prize: 500 yen

• Third Prize: 5 yen

　At the time, 5,000 yen represented a substantial sum of money, equivalent to several million yen in today's purchasing power.

3. Alternative to Interest Payments

　Rather than offering attractive interest rates, the bonds relied on the possibility of winning premium prizes to encourage public participation.

4. Distribution

　The bonds were primarily sold through the Nippon Kangyo Bank (Japan Hypothec Bank).

Wartime Developments

　As Japan's involvement in World War II expanded, additional issues were released under names such as "Premium Wartime Patriotic Bonds." Bond certificates often featured military-themed designs, including tanks, warships, and other patriotic imagery intended to promote support for the war effort.

Postwar Fate

　Following Japan's defeat in 1945, severe inflation greatly reduced the value of many government securities. As a result, Premium Patriotic Bonds lost most of their financial significance and survive today primarily as historical and collectible items.

Summary

　Premium Patriotic Bonds were lottery-style government bonds issued by wartime Japan to finance military expenditures. By combining government borrowing with the excitement of prize drawings, they encouraged ordinary citizens to contribute their savings to the nation's war effort.

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