2 Pesos

Cagayan's wartime emergency notes were authorized under the Philippine Commonwealth government's dispersal policy following the Japanese invasion — provincial and municipal authorities were permitted to issue their own currency to keep local economies functioning after central banking infrastructure collapsed. The Province of Cagayan in northern Luzon operated with some insulation from the early occupation, but these notes were always provisional, redeemable in theory against future Commonwealth funds.

The Internal Revenue stamp used as a security feature is characteristic of the improvised authentication methods employed across Philippine provincial issues of this period — formal security printing was simply unavailable.