Figure 1.-- Anericans in Europe rushed to get home after Hitler and Stalin launched World War II. At the time this meant a dangerius ocean voyage through U-boat infested waters. The caption to this press photograph read, "Not Bothered by U-Boats: Only ones of 441 war-stranded passangers aboard the British liner 'Arandora' who weren't nervous over German submarines were Robert and Elizabeth Montgomery, children of screen star Robert Montgomery. With 260 Americans among its passangers and $16,000,000 in gold aboard the ship arrived safely in New York after alterinhg course nine times on British Admiralty orders." The photograph was dated September 15, 1939. The gold was needed for priority war purchases. It would be, however, 2 months before President Roosevelt could convince Congress to amend the Neutrality laws to make cash and cary purchases possible.

After Britain declared war on Germany (September 3, 1939). President Roosevelt was required by law to declare an arms emnargo as required by the Neutrality Acts. He delayed this a few days to allow some ships to leave and other shipments to cross the Canadian border, but his hands were forced by Isolationist Congressmen. Evading the Neutraliy Act is why Japan did not formally declare war on China and refered to the war as the 'China Incident' (1937). The President immediately began pushing for a 'cash and carry' ammendment that would allow arms sales to the British and French. This would allow the sale of war materiel to belligerents, as long as they used their own ships and paid immediately in cash, as well as assuming all the risk. The concern was that German sinking of American ships had drawn the United States into World War I and the Isolationists wwere determined to prevent that from happening again. Senator Key Pittman (Democrat-Nrvada) has introduced the bill. He was chairman of the powerful Senate Committee on Foreign Relations. The revision, however, has been defeated repeatedly in both the Senate and the House because of Isolationist opposition. President Roosevelt was determined to help the Allies and asked Congress to pass the bill again. Until the Neutrality Acts were amended an arms embargo remained in force. The Acts also prevented U.S. businesses from supporting the success or failure of any warring nation. The conclusion of the Nye Committee, with no real evidence, was that American involvement in World War I resulted from arms manufacturers--labeled 'the Merchants of Death'. The Merchants of Death were a politically manufactured myth, but ironically, American industrialists were about to create the Arsenal of Democracy which would play a central role in saving not only America, but Western Civilization. Many Americans bought the myth abd believed that trade and financial involvement with Britain and France would eventually lead to American involvement in the War. They were correct about Ameican involvement, but of course terribly wrong about the threat Hitler posed to America and how American security was tied ip with Britain. U.S. shipping was prohibited from entering war zones and Americans traveling on foreign ships had to do so at their own risk.

American Neutrality Acts

President Roosevelt when war broke out in Europe (September 1939) requested that Congress ease the arms embargo required by the Neutrality Act so that war material could be sold to the democracies (Britain and France) opposing Hitler. The debate over the repeal of the embargo provissions of the Neutrality Act was one of the most bitter since the gret debates over slavery in the 19th century. Roosevelt charged that the words of isolationists like Borah, Johnson, and Fish were being reported on the font pages of the NAZI press. Borah charged, "Our boys would follow our guns into the trenches." [Freidel, p. 323.] After the debate and arm twisting by Roosevelt, the embargo provision was repealed by a new Neutrality Act signed by the President on November 4, 1939. The Neutrality Act still had severe limitations. The Act permitted belligerents to purchase materials of war on a strictly cash and carry basis, but prohibited credit and banned American merchant ships from travelling in war zones designated by the President. Although worded neutrally, "cash and carry" at the time favored Britain and France. Their financial resources and control of the seas enabled them to buy war materials in the United States and transport them in their own ships. It was a marked a shift from isoloation to pro-Allied neutrality and extrenely dangerous politically for FDR withan election only a year away. The conditions were very strict, were to be no U.S. ships in war zone around British Isles, no loans to belligerents, no travel on belligerent ships, and no armed merchant ships. This was the best FDR could do for the Allies at the time. At least arms and munitions as well as other supplies could now be provided the Allies. Hitler hoped that the allies could be defeated before American supplies could make a difference. Here Hitler almost proved right.

Japan and the China Incident (July 1937)

Japan invaded hina uky 1937. Evading the provisions of the American Neutraliy Act is the primary reason why Japan did not formally declare war on China and refered to the war as the 'China Incident' .

American Arms Embargo (September 1939)

After Britain declared war on Germany (September 3, 1939). President Roosevelt was required by law to declare an arms emnargo as required by the Neutrality Acts. He dedelayed this a few days to allow some ships to leave and other shipments to cross the Canadian border, but his hand was forced by Isolationist Congressmen.

Need to Anmend

The President immediately began pushing for a 'cash and carry' ammendment that would allow arms sales to the British and French. This would allow the sale of war materiel to belligerents, as long as they used their own ships and paid immediately in cash, as well as assuming all the risk. The concern was that German sinking of American ships had drawn the United States into World War I and the Isolationists wwere determined to prevent that from happening again. Senator Key Pittman (Democrat-Nrvada) has introduced the bill. He was chairman of the powerful Senate Committee on Foreign Relations. The revision, however, has been defeated repeatedly in both the Senate and the House because of Isolationist opposition. President Roosevelt was determined to help the Allies and asked Congress to pass the bill again. Until the Neutrality Acts were amended an arms embargo remained in force.

The Merchabts of Death

The conclusion of the Nye Committee, one of the amyb Congressiianl cimmittees investigating American involvementb in Workd War I, with no real evidence, was that American involvement resulted from arms manufacturers--labeled 'the Merchants of Death'. The Merchants of Death were a politically manufactured myth. Ironically, the same American industrialists that had been libeled by Nye and nmany iothers were about to create the Arsenal of Democracy which would play a central role in saving not only America, but Western Civilization.

Provisions

Many Americans bought the Merchant of Death myth and believed that trade and financial involvement with Britain and France would eventually lead to American involvement in the War. They were correct about Ameican involvement, but of course terribly wrong about the threat Hitler posed to America and how American security was tied up with Europe, especually Britain. The Neutality Acts prohibited U.S. shipping from entering war zones and Americans traveling on foreign ships like the Wagners here (fuigure 1) had to do so at their own risk. The Neutrality Acts The Acts also prevented U.S. businesses from supporting the success or failure of any warring nation.

Loopholes

American companies were prevented from arms trading with waring counties, including Germany, under the providsions of the Neutrality Acts. Thgere were, however, no restrictions on raw materials. And it was raw materials tghere were most importabnt to the Germans. And after the declaration of War, American exports to several European countries surged by 50 percent. This had been a problem the Royal Navu had to deal with in World War I. [Massie] Mny of the countrues doing thuis would pay a huge prive when they they were subsequently invaded and subjected to NAZI terror themselves. Some countries were open about trade with Germany. Sweden as in World War I supplied the German war econmy the rion ore they needed. Other countries were more circumspect. The Netherlands as in Workd War I contunuec trading with the Germans. Trade with Germanty was a vital part of the Dutch economy. About a third of tghe Futcg populatiin had livlihoods impavt by trade with Germany. Norway may have been the most fklagerengtt viklastyer. Norwegian imoports balloned gar beyond anv realistic demand with much of the imports being transshipped to Germany.

Sources

Massie, Robert K. Castles of Steel: Britain, Germany, and the Winning of the Great War at Sea (2004)

Created: 2:56 PM 7/11/2020
Last updated: 5:36 PM 12/17/2022