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Neutrality Acts
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The Neutrality Acts were a series of laws that were passed by the United States Congress in the 1930s, in response to the growing turmoil in Europe and Asia that eventually led to World War II. They were spurred by the growth in isolationism and non-interventionism in the US following its costly involvement in World War I, and sought to ensure that the US would not become entangled again in foreign conflicts.
The legacy of the Neutrality Acts in the 1930s was widely regarded as having been generally negative: they made no distinction between aggressor and victim, treating both equally as "belligerents"; and they limited the US government's ability to aid Britain against Nazi Germany.
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Encyclopedia
The Neutrality Acts were a series of laws that were passed by the United States Congress in the 1930s, in response to the growing turmoil in Europe and Asia that eventually led to World War II. They were spurred by the growth in isolationism and non-interventionism in the US following its costly involvement in World War I, and sought to ensure that the US would not become entangled again in foreign conflicts.
The legacy of the Neutrality Acts in the 1930s was widely regarded as having been generally negative: they made no distinction between aggressor and victim, treating both equally as "belligerents"; and they limited the US government's ability to aid Britain against Nazi Germany. The acts were largely repealed in 1941, in the face of German submarine attacks and the Japanese attack on Pearl Harbor.
Background
The Nye Committee hearings between 1934 and 1936 and several best-selling books of the time supported the conviction of many Americans that the U.S. entry into World War I had been orchestrated by bankers and arms dealers for profit reasons. This strengthened the position of isolationists and non-interventionists in the country.
Powerful forces in Congress pushing for non-interventionism and strong Neutrality Acts were the Republican Senators William Edgar Borah, Arthur H. Vandenberg, Gerald P. Nye and Robert M. La Follette, Jr., but support of non-interventionism was not limited to the Republican party. The Ludlow Amendment, requiring a public referendum before any declaration of war except in cases of defense against direct attack, was introduced several times without success between 1935 and 1940 by Democratic Representative Louis Ludlow.
Democratic President Roosevelt and especially his Secretary of State Cordell Hull were critical of the Neutrality Acts, fearing that they would restrict their options to support the country's allies. Even though both House and Senate had large Democratic majorities throughout these years, Roosevelt could not prevent passage of the acts, and reluctantly signed them, in the face of strong Congressional and public opinion.
Neutrality Act of 1935
Roosevelt's State Department had lobbied for embargo provisions that would allow the President to impose sanctions selectively. This was rejected by Congress.
The 1935 act, signed on August 31, 1935, imposed a general embargo on trading in arms and war materials with all parties in a war. It also declared that American citizens traveling on warring ships traveled at their own risk. The act was set to expire after six months.
Roosevelt invoked the act after Italy's invasion of Ethiopia in October 1935, preventing all arms and ammunition shipments to both countries. He also declared a "moral embargo" against the belligerents, covering trade not falling under the Neutrality Act.
Neutrality Act of 1936
The Neutrality Act of 1936, passed in February of that year, renewed the provisions of the 1935 act for another 14 months. It also forbade all loans or credits to belligerents.
However, this act did not cover "civil wars," such as that in Spain (1936-1939), nor did it cover materials such as trucks and oil. US companies such as Texaco, Standard Oil, Ford, General Motors, and Studebaker used this loophole to sell such items to Franco on credit. By 1939, Franco owed these and other companies more than $100,000,000.
Neutrality Acts of 1937
In January 1937, the Congress passed a joint resolution outlawing the arms trade with Spain. The Neutrality Act of 1937, passed in May, included the provisions of the earlier acts, this time without expiration date, and extended them to cover civil wars as well.
Further, U.S. ships were prohibited from transporting any passengers or articles to belligerents, and U.S. citizens were forbidden from traveling on ships of belligerent nations.
In a concession to Roosevelt, a "cash and carry" provision that had been devised by his advisor Bernard Baruch was added: the President could permit the sale of non-arms to belligerents as long as the recipients arranged for the transport and paid immediately in cash, with the argument that this would not draw the U.S. into the conflict. Roosevelt believed that cash and carry would aid France and Great Britain in the event of a war with Germany, since they were the only countries that controlled the seas and were able to take advantage of the provision. The cash and carry clause was set to expire after two years.
Japan invaded China in July 1937, starting the Sino-Japanese War (1937-1945). President Roosevelt, who supported the Chinese side, chose not to invoke the Neutrality Acts since the parties had not formally declared war. In so doing, he ensured that China's efforts to defend itself would not be hindered by the legislation: China was dependent on arms imports and only Japan would have been able to take advantage of cash and carry. This outraged the isolationists in Congress who claimed that the spirit of the law was being undermined. Roosevelt stated that he would prohibit American ships from transporting arms to the belligerents, but he allowed British ships to transport American arms to China. Roosevelt gave his Quarantine Speech in October 1937, outlining a move away from neutrality and towards "quarantining" all aggressors. He then imposed a "moral embargo" on exports of aircraft to Japan.
Neutrality Act of 1939
Early in 1939, after Nazi Germany had invaded Czechoslovakia, Roosevelt lobbied Congress to have the cash and carry provision renewed. He was rebuffed, the provision lapsed, and the mandatory arms embargo remained in place. In September, after Germany had invaded Poland and Great Britain and France had subsequently declared war on Germany, Roosevelt invoked the provisions of the Neutrality Act but came before Congress and lamented that the Neutrality Acts may give passive aid to an aggressor. He prevailed over the isolationists and on November 4th the Neutrality Act of 1939 was passed, allowing for arms trade with belligerent nations on a cash and carry basis, thus in effect ending the arms embargo. Furthermore, American ships were barred from entering war zones designated by the President.
End of neutrality policy
The end of neutrality policy came with the Lend-Lease Act of March 1941, which allowed the U.S. to sell, lend or give war materials to allied nations.
After repeated attacks by German submarines on U.S. ships, Roosevelt announced on 11 September 1941 that the he had ordered the U.S. Navy to attack German and Italian war vessels in the "waters which we deem necessary for our defense". After the sinking of the destroyer on October 31, much of the provisions of the Neutrality Acts were repealed on November 17, 1941: merchant vessels were allowed to be armed and to carry any cargoes to belligerent nations. The U.S. formally declared war on Japan on 8 December 1941 following the attack on Pearl Harbor of the previous day; Germany and Italy declared war on the U.S. on 11 December 1941, and the U.S. responded with a declaration of war on the same day.
Further reading
- Divine, Robert A. The Illusion of Neutrality, Chicago 1962.
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