Second Sicilian Invasion

Four months ago certain U.S. and British officials met in deepest secrecy to discuss one prime necessity for any invasion of the continent--invasion currency. Since retreating armies usually destroy currency, to disrupt the civilian economy and hinder occupying forces, the officials knew that Allied invasion forces must bring their own currency in.

Once planned, the Anglo-American money was made by the U.S. Bureau of Engraving and Printing. To guard the secret, the bills (issued in eight denominations from 1 to 1,000) were printed only with the legend "Allied Military Currency" on one side and the Four Freedoms (in English) on the reverse. Not till the invasion of Sicily began were the words "Lira" and "Series 1943," "Issued in Italy" printed on the bills. Seven tons (about 30,000,000 lira to the ton) were then loaded in two transport planes and flown abroad.

Army Orders. As the first note went into circulation the question popped up: Under what authority did the U.S. Treasury print a new type of currency? Coinage is the jealous right of Congress alone. The answer is in international law. A military commander in an occupied zone is the de facto government of the area. He can levy and collect taxes, issue money. The money was printed, not on orders of the U.S. Treasury, but on orders of the U.S. Army, which footed the printing bill.

This new invasion currency is not the same as "spearhead" bank notes, so called because they were first used in North Africa to pay the U.S. troops which formed the "spearhead" of invading forces. Similar to ordinary U.S. dollars (except for a gold instead of a blue seal), spearhead money is backed by the U.S. Treasury, is negotiable in the U.S., is permanent money by all currency laws. On the other hand, invasion money is not intended to be permanent in Sicily (or any other country where it may later be used). It is only a kind of monetary crutch provided by the joint military occupying force until a permanent currency is established.

Army Banks. If a captured Sicilian town has been swept clean of Italian lira, but bank records are intact, military authorities stock the banks with invasion money. If the bank has been destroyed, the military sets up its own bank, circulates the currency by buying supplies, paying for land for new airports, paying laborers and U.S. troops (at a fixed rate of 100 lira to the dollar). To prevent inflation, a close check is kept on the amount issued. What the U.S. army spends on payrolls and purchases will be lopped from its appropriations back home.

Because of this pinchfist watchfulness (and the mighty prestige of the U.S. dollar and British pound) the money is being cheerfully accepted by Sicilians. The currency will be issued and circulated until a stable civilian government of Sicilians is strong enough to walk on its monetary feet. Then the military will get out of the money business.

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