WORLD HISTORY

Detailed explanation-1: -The purpose of this policy was to allow the Allied nations at war with Germany to purchase war materials while maintaining a semblance of neutrality for the United States.

Detailed explanation-2: -U.S. Cash and Carry The legislation, passed and signed by Roosevelt in November 1939, allowed belligerents to purchase war materiel if they could pay cash for it and arrange for its transportation on board their own ships.

Detailed explanation-3: -The Neutrality Act of 1939 allowed belligerents to purchase war materiel from the United States, but only on a “cash and carry” basis. The Johnson Act of 1934 also prohibited the extension of credit to countries that had not repaid U.S. loans made to them during World War I-which included Great Britain.

Detailed explanation-4: -Before passage of the Neutrality Act of 1939, Roosevelt persuaded Congress to allow the sale of military supplies to allies like France and Britain on a “cash-and-carry” basis: They had to pay cash for American-made supplies, and then transport the supplies on their own ships.

Detailed explanation-5: -What did the Neutrality Acts do? Broadly, the Neutrality Acts placed a ban on the sale of American arms and munitions to any country at war (with exceptions, after Cash and Carry was implemented in 1937 and again in 1939). They also prohibited Americans from traveling to or on ships owned by belligerent nations.