German American Economic Policy – Administer $33 billion German debt: 1919-1932

  • Coolidge Administration, by Pres. Coolidge monitored Germany (GE) debt (2 representatives from Britain, France, Italy, Japan, USA)
  • Charles G. Dawes proposed Dawes Plan
  • Fr. leaves Ruhr Valley, Allies control GE Banks & introduce new taxes
  • 1 Billion was due in 1924 & by 1928, 2.5 Billion was due, GE could get loans to get things started
  • Young Plan – proposed by Owen D. Young for effect in 1929 (need new strategy to help GE in depression)

o    reduced total debt to 26 Billion & annual to 473 million over 58 years

o    more taxes on GE & removed Allied control over economy

o    set up an International Bank of Settlement, managed paid installments

  • Am. rejects Laussane Conference resolutions

o    debts reduced to $714 Million & creation of payment bonds, if agreed

  • Am. always said, GE ability to pay the reparations is not connected to US getting back their $10 billion
  • London accused Japan of being an aggressor & said Japan violated the 1928 Kellogg-Brand pact, (countries cannot engage in war & must use pacifistic methods to resolve disputes) & violated Nine-Power Treaty 1922 (Recognition of Manchuria’s sovereignty)
  • Fighting continued, USA issued the Stimson Doctrine; they’d ignore all the fighting & plead for help, until Japan opted for peaceful methods
  • US wouldn’t recognize treaties until fighting stopped – non-recognition policy
  • Japan didn’t stop, USA & London decided that they wouldn’t stop Japan, fearing a war & loss of more lives

Japan’s Annexation of Manchuria

  • London accused Japan of being an aggressor & said Japan violated the 1928 Kellogg-Brand pact, (countries cannot engage in war & must use pacifistic methods to resolve disputes) & violated Nine-Power Treaty 1922 (Recognition of Manchuria’s sovereignty)
  • Fighting continued, USA issued the Stimson Doctrine; they’d ignore all the fighting & plead for help, until Japan opted for peaceful methods
  • US wouldn’t recognize treaties until fighting stopped – non-recognition policy
  • Japan didn’t stop, USA & London decided that they wouldn’t stop Japan, fearing a war & loss of more lives

Neutrality Acts

Neutrality Act of August 31, 1935

  • Set a 6 months Embargo on all arms trade with any countries warring against each other
  • Tested when Italy invaded Abyssinia, October 1935

Neutrality Act of 1936

  • Extend previous act by 14 months
  • Businesses were not allowed to trade on loans or credit to belligerent countries
READ:
Hitler’s Views of the Jewish People

Neutrality Act of May 1937 – revised other acts

  • Travel to all belligerent countries was banned and extended act’s implications to civil wars as well

Neutrality Act of November 4, 1939

  • Cash & Carry Program, which segued  into the Lend/Lease Program
  • Americans could now travel to most belligerent countries, at their own risk
  • USA placed embargos on belligerent materials– told Italy that invading could lead to another WW
  • Sec. of State Hull said Am. would not intervene, but try to encourage peace
  • USA rejected it; London offers to join in sanctions
  • Italy said US violated 1871 Treaty (signed for commerce) by doing “unfriendly acts”
  • USA said they still had the right to be neutral
  • USA remained neutral, Italy took over Abyssinia 1936 & US never recognized Italian rule over Abyssinia
    • 1933 – most obsolete war equipment replaced
    • 1934 – Gen. Arthur MacDouglas, Hull and FDR expand US army for defence
    • Army size: 115,000 > 165,000
    • Proposed Ludlow Resolution and vetoed

American policy on Mussolini’s Invasion on Abyssinia: 1935

  • USA placed embargos on belligerent materials– told Italy that invading could lead to another WW
  • Sec. of State Hull said Am. would not intervene, but try to encourage peace
  • USA rejected it; London offers to join in sanctions
  • Italy said US violated 1871 Treaty (signed for commerce) by doing “unfriendly acts”
  • USA said they still had the right to be neutral
  • USA remained neutral, Italy took over Abyssinia 1936 & US never recognized Italian rule over Abyssinia

Rearmament

o    Nationwide referendum required to wage war

  • FDR accused of conspiring with other nations to enter war.
  • Hull warned that more problems would arise
    • Encouraged continuous efforts for peace and economic stability
    • Agreement between UK & USA in 1940
    • FDR & Churchill made the Destroyer-Bases deal
    • 50 destroyers sent from US navy for US land rights on British possessions (British Guiana, West Indies, Newfoundland)
    • USA jeopardizes its safety – British colonies in the Americas could prove detrimental if Britain fell to Germany
      • Policy aimed to aid Allies with military supplies in WWII.
      • The speech reflected America’s approach to WW II.
      • Detroit nicknamed “Arsenal of Democracy” since it was the heartland for automotive & armaments products.
      • Led to decline in America’s isolationistic & non-interventionist views
      • New program: America sent military supplies to all the Allied nations during WW II —  to promote Am. security
      • Gave the president power to sell, lend, lease and exchange to any government whose defence the President deemed vital to the defence of the United States.
      • President says “I don’t say Neighbour, my garden hose cost me $15, you have to pay me $15 for it. I don’t want $15, I want my garden hose back after the fire is over”
      • Approximately 50 billion worth of goods were supplied
READ:
Start of World War II

Munich: September 28, 1938

  • Hull warned that more problems would arise
    • Encouraged continuous efforts for peace and economic stability

Destroyer Deal: September 2, 1940

  • Agreement between UK & USA in 1940
  • FDR & Churchill made the Destroyer-Bases deal
  • 50 destroyers sent from US navy for US land rights on British possessions (British Guiana, West Indies, Newfoundland)

USA jeopardizes its safety – British colonies in the Americas could prove detrimental if Britain fell to Germany

Arsenal for Democracy

  • Policy aimed to aid Allies with military supplies in WWII.
  • The speech reflected America’s approach to WW II.
  • Detroit nicknamed “Arsenal of Democracy” since it was the heartland for automotive & armaments products.
  • Led to decline in America’s isolationistic & non-interventionist views

Lend Lease Act: 1941-1945

  • New program: America sent military supplies to all the Allied nations during WW II —  to promote Am. security
  • Gave the president power to sell, lend, lease and exchange to any government whose defence the President deemed vital to the defence of the United States.
  • President says “I don’t say Neighbour, my garden hose cost me $15, you have to pay me $15 for it. I don’t want $15, I want my garden hose back after the fire is over”
  • Approximately 50 billion worth of goods were supplied
author avatar
William Anderson (Schoolworkhelper Editorial Team)
William completed his Bachelor of Science and Master of Arts in 2013. He current serves as a lecturer, tutor and freelance writer. In his spare time, he enjoys reading, walking his dog and parasailing. Article last reviewed: 2022 | St. Rosemary Institution © 2010-2024 | Creative Commons 4.0

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