During WWII, with fears that Japan would overrun Hawaii, the US decided to issue the $1, $5, $10 and $20 Emergency Federal Reserve Notes with the word “HAWAII” overprinted on the front and back to make each note distinctive enough so that they would know if large amounts were being used to fund the enemy war effort.
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My mother was living in Hawaii during WWII, and saw Pearl Harbor attacked. She says that she didn’t think at the time about the conclusion one could draw from having currency printed up under the assumption the Islands could be captured, but she did say it was quite a bother to turn in for exchange the over-printed currency at the end of the war.