American and British Trade in WWII

The second world war started in 1939. From that point America wanted to be neutral. America had seen what had happened to the soldiers that it sent to fight and die in WWI, and congress wanted to remain neutral. However, just because america was neutral in the conflict, it could still be traded with. The Neutrality Act of 1936 was passed to preemptively stop american involvement in another world war.  The act stated that american merchants are not to trade items that could be used in war with any nations in conflict, whether or not they were the aggressor. However, those nations were allowed to buy american goods that could not be used in war only if they came to an american port, payed in cash (US dollars), and took the newly bought goods away on their own ships. This meant that america didn’t have to use a credit system with other countries, and that american ships weren’t at risk. Also, by selling goods that could not be used in war, america maintained its neutrality. This system was called “cash and carry”. As the war continued in Europe, president Roosevelt wanted to support the British, but the public fear of being dragged into another massive war did not allow him to do that. Eventually, in 1940, Roosevelt signed the “Destroyers for Bases” agreement. This was a deal between America and the Britain that stated that America would trade 50 military ships for 99-year leases on British bases in the Caribbean and Canada. Later that year, Britain ran into a financial crisis. They couldn’t afford to pay for american goods in US dollars. If the British weren’t allowed any more supplies, they couldn’t fight the war any longer. This would mean that Britain would have to surrender, and all the resources that America gave to Britain would fall into Nazi hands. With this in mind, Roosevelt proposed a new system called the “lend-lease” system. It would allow the British and any other country that America allowed to take as many resources as they needed without immediate payment. America would be eventually paid back in goods and services as opposed to US dollars. Overall, this agreement allowed the British to successfully fight the Germans and push them away from British territory.

Source: https://history.state.gov/milestones/1937-1945/lend-lease
(and classroom presentation)