Cash and carry (World War II)
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Cash and carry was a policy requested by U.S. President Franklin Delano Roosevelt at a special session of the United States Congress on September 21, 1939, as World War II was spreading throughout Europe. It replaced the Neutrality Acts of 1936. The revision allowed the sale of materiel to belligerents, as long as the recipients arranged for the transport using their own ships and paid immediately in cash, assuming all risk in transportation. The purpose was to hold neutrality between the United States and European countries while still giving aid to Britain, exploiting the fact that Germany had no funds and could not reliably ship across the British-controlled Atlantic. Various policies forbade selling implements of war or lending money to belligerent countries under any terms.[clarification needed] 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 purchase of arms and other goods.
This program also prevented U.S. 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]
U.S. shipping interests were forbidden from entering into conflict zones.
This act also made sure that the U.S. did not give away all its supplies and rations.[clarification needed]
[edit] Analysis
Despite its success, this policy soon left the Allies (especially China) short on cash and this forced U.S. leaders to revise the plan. The revised plan was known as the Lend-Lease program, in which the European allies didn't have to pay cash or arrange transportation any longer. Instead, the U.S. would demand payment at a later time.
In keeping with the Monroe Doctrine, the U.S. did not actively participate in the war until both Japan and Germany declared war on the U.S., after which they switched from allied assistance to active engagement.
[edit] External links
- Allies and Lend-Lease Museum, Moscow
- President Roosevelt's address to Congress announcing the cash & carry programme (RealAudio format)
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