The Cash & Carry Act of 1939

The Cash and Carry Act of 1939 was actually an amendment to the 1937 Neutrality Act promoted by then-U.S. President Franklin Roosevelt to sell arms to the Allied powers, according to Indiana University.

Function

• The 1937 Neutrality Act barred the U.S. from selling munitions to the Allied powers--France and Great Britain, according to Encyclopedia.com. The 1939 Cash and Carry amendment maintained U.S. neutrality, but allowed munitions sales to participants of World War II.

Significance

• The U.S. maintained a mostly isolationist position during most of the 1930s, in part due to the backlash from the U.S. entering World War I and the looming European war, according to Indiana University. By letting arms manufacturers sell their wares for cash, the U.S. could avoid getting entangled in the war due to outstanding debts from warring countries.

Effects

• The Neutrality Act did little to keep the U.S. out of World War II, because Japan would attack Pearl Harbor in 1941.