Cash and carry (World War II)

Last updated

Cash and Carry was a policy by US President Franklin Delano Roosevelt announced at a joint session of the United States Congress on September 21, 1939, subsequent to the outbreak of war in Europe. It replaced the Neutrality Act of 1937, by which belligerents could purchase only nonmilitary goods from the United States as long as the recipients paid immediately in cash and assumed all risk in transportation using their own ships. [1] A later revision, the Neutrality Act of 1939, allowed the sale of military arms to belligerents on the same cash-and-carry basis. [2]

Contents

History

Background

Because of the conclusion of the Nye Committee, which asserted that United States involvement in World War I was driven by private interests from arms manufacturers, many Americans believed that investment in a belligerent would eventually lead to American participation in war. [3] The first Neutrality Act was passed in August 1935. It was renewed in 1936 and later extended to May 1937. The Act forbade selling implements of war or lending money to belligerent countries under any terms. US passengers traveling on foreign ships were advised that they did so at their own risk. [4]

The Neutrality Act of 1937 continued this policy, and in addition, forbade U.S. citizens from traveling on belligerent ships. However, belligerent countries could purchase non-military items provided they paid cash and the goods were not transported on American ships. (Raw materials such as oil were not considered "implements of war".) Roosevelt arranged the inclusion of the "cash and carry" clause "...as a deliberate way to assist Great Britain and France in any war against the Axis Powers, since he realized that they were the only countries that had both the hard currency and ships to make use of "cash-and-carry." [4] The clause was set to expire after two years.

Neutrality Act of 1939

By the spring of 1939, Roosevelt wanted more flexibility in dealing with the militaristic policies of Germany, Japan, and Italy. [5] Originally presented to Congress by Senator Key Pittman (D-NV) earlier in 1939, the bill was designed to replace the Neutrality Act of 1937, which had lapsed in May 1939. [6]

The bill had been defeated repeatedly by the Senate and the House on more than one occasion as Isolationists feared that passing the bill would draw the US into the conflict in Europe and Asia. However, after Germany invaded Poland in September 1939, the position of many in Congress changed. Senator George W. Norris said, "If we repeal it, we are helping England and France. If we fail to repeal it, we will be helping Hitler and his allies. Absolute neutrality is an impossibility." [5]

On November 2, the House passed the Pittman Act repealing provisions of the 1935 act by a vote of 243 to 181. The President gave his signature on November 4. [7] The Act continued the prohibition of making loans to belligerents and the use of American ships, but lifted the ban on arms sales. [8]

The purpose of this policy was to allow the Allied nations at war with Germany to purchase war materials while maintaining a semblance of neutrality for the United States. Coming out of the Great Depression, the U.S. economy was rebounding. Further growth in manufacturing would propel the economy forward. The cash and carry program stimulated U.S. manufacturing while allowing the Allied nations, particularly the United Kingdom, to purchase much needed military equipment. [9]

The "cash and carry" legislation enacted in 1939 effectively ended the arms embargo that had been in place since the Neutrality Act of 1936, and paved the way for Roosevelt's Lend-Lease program.

See also

Related Research Articles

The Neutrality Acts were a series of acts passed by the US Congress in 1935, 1936, 1937, and 1939 in response to the growing threats and wars that led to World War II. They were spurred by the growth in isolationism and non-interventionism in the US following the US joining World War I, and they sought to ensure that the US would not become entangled again in foreign conflicts.

<span class="mw-page-title-main">Lend-Lease</span> WWII program to provide U.S. allies with free armaments

Lend-Lease, formally the Lend-Lease Act and introduced as An Act to Promote the Defense of the United States, was a policy under which the United States supplied the United Kingdom, the Soviet Union, France, the Republic of China, and other Allied nations of the Second World War with food, oil, and materiel between 1941 and 1945. The aid was given free of charge on the basis that such help was essential for the defense of the United States.

This section of the timeline of United States history concerns events from 1930 to 1949.

A neutral country is a state that is neutral towards belligerents in a specific war or holds itself as permanently neutral in all future conflicts. As a type of non-combatant status, nationals of neutral countries enjoy protection under the law of war from belligerent actions to a greater extent than other non-combatants such as enemy civilians and prisoners of war. Different countries interpret their neutrality differently: some, such as Costa Rica have demilitarized, while Switzerland holds to "armed neutrality", to deter aggression with a sizeable military, while barring itself from foreign deployment.

<span class="mw-page-title-main">The Emergency (Ireland)</span> State of emergency in the Republic of Ireland during World War II

The Emergency was a state of emergency in the independent state of Ireland in the Second World War, throughout which the state remained neutral. It was proclaimed by Dáil Éireann on 2 September 1939, allowing the passage of the Emergency Powers Act 1939 by the Oireachtas the following day. This gave sweeping powers to the government, including internment, censorship of the press and correspondence, and control of the economy. The Emergency Powers Act lapsed on 2 September 1946, although the Emergency was not formally ended until 1976.

<span class="mw-page-title-main">United States aircraft production during World War II</span>

America's manufacturers in World War II were engaged in the greatest military industrial effort in history. Aircraft companies went from building a handful of planes at a time to building them by the thousands on assembly lines. Aircraft manufacturing went from a distant 41st place among American industries to first place in less than five years.

United States non-interventionism primarily refers to the foreign policy that was eventually applied by the United States between the late 18th century and the first half of the 20th century whereby it sought to avoid alliances with other nations in order to prevent itself from being drawn into wars that were not related to the direct territorial self-defense of the United States. Neutrality and non-interventionism found support among elite and popular opinion in the United States, which varied depending on the international context and the country's interests. At times, the degree and nature of this policy was better known as isolationism, such as the interwar period, while some consider the term isolationism to be a pejorative used to discredit non-interventionist policy.

<span class="mw-page-title-main">The Darkest Hour</span> Phrase used to refer to World War II in 1940–1941

"The Darkest Hour" is a phrase used to refer to an early period of World War II, from approximately mid-1940 to mid-1941. While widely attributed to Winston Churchill, the origins of the phrase are unclear.

<span class="mw-page-title-main">76th United States Congress</span> 1939–1941 U.S. Congress

The 76th United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives. It met in Washington, D.C., from January 3, 1939, to January 3, 1941, during the seventh and eighth years of Franklin D. Roosevelt's presidency. The apportionment of seats in the House of Representatives was based on the 1930 United States census.

<span class="mw-page-title-main">Allies of World War II</span> Grouping of the victorious countries of the war

The Allies, formally referred to as the United Nations from 1942, were an international military coalition formed during World War II (1939–1945) to oppose the Axis powers. Its principal members by the end of 1941 were the "Big Four" – the United Kingdom, United States, Soviet Union, and China.

The Committee to Defend America by Aiding the Allies (CDAAA) was an American mass movement, political action group formed in May 1940. Also known as the White Committee, its leader until January 1941 was William Allen White. Other important members included Clark Eichelberger and Dean Acheson. The CDAAA shared its leadership with the dissolved Non-Partisan Committee for Peace through Revision of the Neutrality Law (NPC), who was also chaired by White and directed by Eichelberger. Additionally, the CDAAA used ex-NPC offices in the League of Nations building at 8 W. Fortieth Street in New York City, as their central base. This has drawn commentators to regard the CDAAA as the successor to the NPC.

<span class="mw-page-title-main">Arsenal of Democracy</span> Slogan of Roosevelt in World War II

"Arsenal of Democracy" was the central phrase used by U.S. President Franklin D. Roosevelt in a radio broadcast on the threat to national security, delivered on December 29, 1940—nearly a year before the United States entered the Second World War (1939–1945). Roosevelt promised to help the United Kingdom fight Nazi Germany by selling them military supplies while the United States stayed out of the actual fighting. The president announced that intent a year before the Attack on Pearl Harbor, at a time when Germany had occupied much of Europe and threatened Britain.

<span class="mw-page-title-main">Joseph L. Pfeifer</span> American politician (1892–1974)

Joseph Lawrence Pfeifer was an American physician and politician who served as a member of the United States House of Representatives for New York's 8th congressional district from 1935 to 1951.

<span class="mw-page-title-main">Frederick Cleveland Smith</span> American politician

Frederick Cleveland Smith was an American physician and politician who served six terms as a Republican member of the U.S. House of Representatives from Ohio from 1939 to 1951.

<span class="mw-page-title-main">Vincent F. Harrington</span> American politician (1903–1943)

Vincent Francis Harrington was a Democratic U.S. Representative from Iowa. Harrington was commissioned in the United States Army Air Forces after the Pearl Harbor attack, resigned from Congress when President Franklin D. Roosevelt disallowed members of Congress from serving in the military at the same time, and died of natural causes while on active duty in England. A Liberty Ship was named in his honor.

The diplomatic history of World War II includes the major foreign policies and interactions inside the opposing coalitions, the Allies of World War II and the Axis powers, between 1939 and 1945.

<span class="mw-page-title-main">German declaration of war against the United States</span> 1941 German war declaration in response to alleged provocations from the United States

On 11 December 1941, four days after the Japanese attack on Pearl Harbor and the United States declaration of war against Imperial Japan, Nazi Germany declared war against the United States, in response to what was claimed to be a "series of provocations" by the United States government when the U.S. was still officially neutral during World War II. The decision to declare war was made by Adolf Hitler, following two days of consultation. It has been referred to as Hitler's "most puzzling" decision of World War II. Publicly, the formal declaration was made to American Chargé d'Affaires Leland B. Morris by German Foreign Minister Joachim von Ribbentrop in the latter's office. Later that day, the U.S. declared war on Germany, with Germany's action having eliminated any remaining meaningful domestic isolationist opposition to the U.S. joining the European war.

<span class="mw-page-title-main">Presidency of Franklin D. Roosevelt, first and second terms</span> U.S. presidential administration from 1933 to 1941

The first term of the presidency of Franklin D. Roosevelt began on March 4, 1933, when he was inaugurated as the 32nd president of the United States, and the second term of his presidency ended on January 20, 1941, with his inauguration to a third term. Roosevelt, the Democratic governor of the largest state, New York, took office after defeating incumbent President Herbert Hoover, his Republican opponent in the 1932 presidential election. Roosevelt led the implementation of the New Deal, a series of programs designed to provide relief, recovery, and reform to Americans and the American economy during the Great Depression. He also presided over a realignment that made his New Deal Coalition of labor unions, big city machines, white ethnics, African Americans, and rural white Southerners dominant in national politics until the 1960s and defined modern American liberalism.

<span class="mw-page-title-main">Presidency of Franklin D. Roosevelt, third and fourth terms</span> U.S. presidential administration from 1941 to 1945

The third presidential term of Franklin D. Roosevelt began on January 20, 1941, when he was once again inaugurated as the 32nd president of the United States, and the fourth term of his presidency ended with his death on April 12, 1945. Roosevelt won a third term by defeating Republican nominee Wendell Willkie in the 1940 United States presidential election. He remains the only president to serve for more than two terms. Unlike his first two terms, Roosevelt's third and fourth terms were dominated by foreign policy concerns, as the United States became involved in World War II in December 1941.

The foreign policy of the United States was controlled personally by Franklin D. Roosevelt during his first and second and third and fourth terms as the president of the United States from 1933 to 1945. He depended heavily on Henry Morgenthau Jr., Sumner Welles, and Harry Hopkins. Meanwhile, Secretary of State Cordell Hull handled routine matters. Roosevelt was an internationalist, while powerful members of Congress favored more isolationist solutions in order to keep the U.S. out of European wars. There was considerable tension before the Attack on Pearl Harbor in December 1941. The attack converted the isolationists or made them irrelevant. The US began aid to the Soviet Union after Germany invaded it in June 1941. After the US declared war in December 1941, key decisions were made at the highest level by Roosevelt, Britain's Winston Churchill and the Soviet Union's Joseph Stalin, along with their top aides. After 1938 Washington's policy was to help China in its war against Japan, including cutting off money and oil to Japan. While isolationism was powerful regarding Europe, American public and elite opinion strongly opposed Japan.

References

  1. Brinkley, Alan (2012). American history : connecting with the past (14th ed.). Boston: McGraw-Hill Higher Education. p. 715. ISBN   9780073406954. OCLC   707486718.
  2. Brinkley 2012, p. 719.
  3. Herman, Arthur. Freedom's Forge: How American Business Produced Victory in World War II, pp. 6, 12, 79, Random House, New York, NY, 2012. ISBN   978-1-4000-6964-4.
  4. 1 2 "The Neutrality Acts, 1930s", Office of the Historian, U.S. Department of State
  5. 1 2 "Congress, Neutrality, and Lend-Lease", National Archives
  6. Brinkley, Dougals; Rubel, David (2003). World War II: The Axis Assault, 1939-1940. USA: MacMillan. pp. 99–106.
  7. "A Special Session to Revise U.S. Neutrality Law", U.S. House of Representatives
  8. Leuchtenburg, William E., "Franklin D. Roosevelt: Foreign Affairs", The Miller Center, UVA
  9. "From Arsenal to Ally", The National WWII Museum

Further reading