Cash and Carry: The U.S. Arms Sales Policy of 1939

Name: Cash and Carry: The U.S. Arms Sales Policy of 1939
Start: 1939-11-04
Location: Unspecified

Introduction to Cash and Carry Arms Sales

The 'Cash and Carry' Policy Explained

The 'Cash and Carry' policy was a pivotal decision in U.S. foreign relations that emerged on November 4, 1939. This policy allowed countries engaged in conflict, mainly those involved in World War II, to purchase arms and munitions from American suppliers if they paid in cash and transported the products themselves. The intention behind this policy was to aid the Allies, particularly Britain and France, while still maintaining a degree of American neutrality.

Impact of Cash and Carry

This policy marked a significant shift in American foreign policy, as it actively included the U.S. in the war's economic aspects. By allowing only cash transactions and self-transportation, the U.S. aimed to minimize the risk of entanglement in European conflicts while still supporting nations fighting against the Axis powers.

Historical Context of Cash and Carry

World War II and American Neutrality

At the onset of World War II, the United States adopted a policy of neutrality, largely influenced by the Great Depression and the trauma of World War I. However, with mounting fears of Axis expansion, the Cash and Carry policy served as a balancing act, enabling the U.S. to supply crucial resources to the Allies without direct involvement in combat.

Legislative Developments

The implementation of the Cash and Carry policy was a product of the Neutrality Act of 1939, which aimed to prevent the U.S. from becoming entangled in foreign wars. This act represented a compromise in Congress that responded to military developments in Europe and the urgent need for Britain and France to bolster their armies against the Nazi threat.

Fun Fact

The Origins of the Phrase ‘Cash and Carry’

The term 'Cash and Carry' itself has roots in the retail industry, where it referred to a method of selling that required immediate payment and self-service. In a historical context, it took on greater significance by reflecting the United States' shift towards economic support for the Allies during a tumultuous period.