Cash and carry (World War II)

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Cash and carry was a policy by US President Franklin Delano Roosevelt at a special session of the United States Congress on September 21, 1939, subsequent to the outbreak of war in Europe. It replaced the Neutrality Acts 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] The "Cash and Carry" revision allowed the purchase of military arms to belligerents on the same cash-and-carry basis. [2]

United States Congress Legislature of the United States

The United States Congress is the bicameral legislature of the Federal Government of the United States. The legislature consists of two chambers: the House of Representatives and the Senate.

World War II 1939–1945 global war

World War II, also known as the Second World War, was a global war that lasted from 1939 to 1945. The vast majority of the world's countries—including all the great powers—eventually formed two opposing military alliances: the Allies and the Axis. A state of total war emerged, directly involving more than 100 million people from over 30 countries. The major participants threw their entire economic, industrial, and scientific capabilities behind the war effort, blurring the distinction between civilian and military resources. World War II was the deadliest conflict in human history, marked by 50 to 85 million fatalities, most of whom were civilians in the Soviet Union and China. It included massacres, the genocide of the Holocaust, strategic bombing, premeditated death from starvation and disease, and the only use of nuclear weapons in war.

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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. [3] 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. However, President Roosevelt felt that further help was needed in Europe after Germany invaded Poland in September 1939. The bill passed in late October, gaining approval from the House on November 5, 1939. [4] The President gave his signature the same day.

Key Pittman American politician

Key Denson Pittman was a United States Senator from Nevada, serving eventually as its president pro tempore and its chairman of the Committee on Foreign Relations. He was a Democrat.

Invasion of Poland invasion of Poland by Germany, the Soviet Union, and a small Slovak contingent

The Invasion of Poland, known in Poland as the September Campaign or the 1939 Defensive War, and in Germany as the Poland Campaign (Polenfeldzug), was an invasion of Poland by Germany that marked the beginning of World War II. The German invasion began on 1 September 1939, one week after the signing of the Molotov–Ribbentrop Pact between Germany and the Soviet Union. The Soviets invaded Poland on 17 September following the Molotov–Tōgō agreement that terminated the Soviet and Japanese Battles of Khalkhin Gol in the east on 16 September. The campaign ended on 6 October with Germany and the Soviet Union dividing and annexing the whole of Poland under the terms of the German–Soviet Frontier Treaty.

The purpose of this policy was to maintain neutrality between the United States and European countries while giving aid to Britain by allowing them to buy non war materials. Various policies, such as the Neutrality Acts of 1935, 1936, and 1937, forbade selling implements of war or lending money to belligerent countries under any terms. The U.S. economy was rebounding at this time, following the Great Depression, but there was still a need for industrial manufacturing jobs. The cash and carry program helped to solve this issue and in turn Great Britain benefited from the purchased goods.

Great Depression 20th-century worldwide economic depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The timing of the Great Depression varied across nations; in most countries it started in 1929 and lasted until the late-1930s. It was the longest, deepest, and most widespread depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how intensely the world's economy can decline.

This program also prevented US businesses interests backing the success or failure of any warring nation. 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.[ citation needed ]

Nye Committee

The Nye Committee, officially known as the Special Committee on Investigation of the Munitions Industry, was a United States Senate committee, chaired by U.S. Senator Gerald Nye (R-ND). The committee investigated the financial and banking interests that underlay the United States' involvement in World War I, and was a significant factor in public and political support for American neutrality in the early stages of World War II.

U.S. shipping interests were forbidden from entering into conflict zones and US passengers traveling on foreign ships did so at their own risk.

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

Lend-Lease United States foreign policy during World War II

The Lend-Lease policy, formally titled An Act to Promote the Defense of the United States, was an American program to defeat Germany, Japan and Italy by distributing food, oil, and materiel between 1941 and August 1945. The aid went to the United Kingdom, China, and later the Soviet Union, Free France, and other Allied nations. It included warships and warplanes, along with other weaponry. The policy was signed into law on March 11, 1941, and ended overnight without prior warning when the war against Japan ended. The aid was free for all countries, although goods in transit when the program ended were charged for. Some transport ships were returned to the US after the war, but practically all the items sent out were used up or worthless in peacetime. In Reverse Lend Lease, the U.S. was given no-cost leases on army and naval bases in Allied territory during the war, as well as local supplies.

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References

  1. Alan., Brinkley, (2012). American history : connecting with the past (14th ed ed.). Boston: McGraw-Hill Higher Education. p. 715. ISBN   9780073406954. OCLC   707486718.
  2. Alan., Brinkley, (2012). American history : connecting with the past (14th ed ed.). Boston: McGraw-Hill Higher Education. p. 719. ISBN   9780073406954. OCLC   707486718.
  3. Brinkley, Dougals; Rubel, David (2003). World War II: The Axis Assault, 1939-1940. USA: MacMillan. pp. 99–106.
  4. Divine, Robert (1969). Roosevelt and World War II. Baltimore, MD, USA: Johns Hopkins University Press. pp. 5–48.