Cash and Carry

Examples of Cash and Carry in the following topics:

• America's Growing Involvement in WWII

  • Cash and carry was a policy requested by U.S.
  • The 1939 cash and carry legislation was designed to replace the Neutrality Act of 1937, which had lapsed in May of 1939.
  • In the "cash and carry" provision, the President was allowed to permit the sale of materials and supplies to countries at war in Europe, so long as the recipients arranged for the transport and paid immediately in cash.
  • Britain had been paying for its war equipment in gold under "cash and carry," as required by the U.S.
  • Describe how the "cash and carry" policy, the Destroyers for Bases Agreement, and the Lend-Lease Act all contributed to U.S. involvement in World War II.

• The Mood in America

  • The outbreak of World War II and increasing threats from Nazi Germany and Japan changed the U.S. long-standing stand of isolationism and non-interventionism.
  • 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 adviser Bernard Baruch was added: the President could permit the sale of materials and supplies to belligerents in Europe 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.
  • Finally, the Neutrality Act of 1939 was passed allowing for arms trade with belligerent nations (Great Britain and France) on a cash-and-carry basis, thus in effect ending the arms embargo.
  • The first came with the passage of the 1939 Neutrality Act (permitting the United States to trade arms with belligerent nations, as long as these came to America to retrieve the arms, and pay for them in cash).

• The "Arsenal of Democracy"

  • "Arsenal of Democracy" was a slogan first used FDR in an American public in a radio broadcast and called for support of the Allied forces.
  • Roosevelt's address was "a call to arm and support" the Allies in their fight against Germany, and to a lesser extent China in their war against Japan.
  • According to Roosevelt, the central fact Americans needed to grasp was, "If Great Britain goes down, the Axis powers will control the continents of Europe, Asia, Africa, Australasia, and the high seas—and they will be in a position to bring enormous military and naval resources against this hemisphere. "
  • Previous policies such as the Neutrality Acts had already begun to be replaced by intensified assistance to the Allies, including the cash and carry policy in 1939 and the Destroyers for Bases Agreement in September 1940.
  • Summarize the objectives and the impact of Roosevelt's "Arsenal of Democracy" speech.

• Degrees of Neutrality

  • Spain offered considerable material, economic, and military assistance to the Axis powers as well.
  • Prominent examples include Nazi Germany invading Denmark and Norway on 9 April 1940, then Belgium, the Netherlands, and Luxembourg on 10 May 1940.
  • Before the US officially ended its neutrality and joined the war in 1941, the US took measures to assist China and the Western Allies.
  • In November 1939, the American Neutrality Act was amended to allow "cash and carry" purchases by the Allies (described in Module 33.3.2).
  • As a result, Germany and the United States found themselves engaged in sustained naval warfare in the North and Central Atlantic by October 1941, even though the United States remained officially neutral.

• Early American Slavery

  • The realities of life in the Americas—violence, exploitation, and particularly the need for workers—were soon driving a thriving practice of slavery and forced labor.
  • The transatlantic slave trade operated from the late 16th to early 19th centuries, carrying slaves, cash crops, and manufactured goods between West Africa, Caribbean or American colonies, and the European colonial powers.
  • The use of African slaves was fundamental to growing colonial cash crops which were exported to Europe.
  • Slavery manifested differently in different parts of the British colonies of North America and was an integral part of the economic culture of the Chesapeake (in tobacco) and the lower South (in rice, indigo, tobacco, and eventually cotton).
  • Farms tended to be larger in the lower South than in the Chesapeake, and farmers worked a variety of crops (such as rice, indigo, and tobacco) staggered over the year.

• Slave Culture

  • Influenced by restrictive laws and brutal treatment, slaves combined African and Christian customs to form a culture of survival and resistance.
  • In all of these instances, slave culture enabled a significant amount of resistance to the plantation economy and created a relatively cohesive slave identity that shaped southern life and relationships between slaves and whites in the colonial era.
  • Some states denied slaves the right to carry firearms, drink liquor, or leave the plantation without their master's written consent.
  • Music, folktales, and storytelling provided an opportunity for the enslaved to educate each other in the absence of literacy, and songs and enthusiastic public worship were often used as a way of channeling and coping with hardships and voicing grievances to others in the slave community.
  • Some slaves were able to sell a surplus of these crops at Sunday markets for a cash profit.

• Jamestown, Virginia

  • Thereafter the settlers waged a relentless war against the Indians, burning and pillaging their villages and cutting down or carrying off their crops.
  • In 1646, Opchanacanough was captured and killed while in custody, and the Powhatan Confederacy began to decline.
  • Although the Indians had grown and smoked tobacco for centuries, their variety was too bitter for the whites and John Rolfe imported a new species from the West Indies and perfected a method of curing it.
  • This singular discovery led to an explosion of success as the plant became the colony's major cash crop.
  • Analyze and discuss the founding and growth of the Jamestown settlement.

• Promoting Economic Development

  • The reports addressed public credit, banking, and raising revenue and encouraged the development of an elaborate system of duties, tariffs, and excises.
  • The "American System" featured semi-skilled laborers using machine tools and jigs to make standardized, identical, interchangeable parts, which could be assembled quickly and with minimal skill.
  • Because the parts were interchangeable, it became possible to separate manufacturing from assembly, which then could be carried out by semi-skilled laborers on an assembly line—an example of the division of labor.
  • Arguing that continued dependence on Europe for manufactured goods jeopardized U.S. independence, Hamilton encouraged Congress to implement protective tariffs, invest in new mechanization processes and technical innovations, import foreign technicians and laborers to foster mechanization, and encourage loans for business entrepreneurs.
  • However, farmers on the western frontier operated private distilleries to generate extra income, and for many poor farmers, whiskey was a medium of exchange, rather than a source of cash.

• African-American Culture

  • Influenced by restrictive laws and brutal treatment, slaves combined African and Christian customs to form a relatively homogeneous culture.
  • Whippings, executions, beatings, and rapes were common humiliations suffered by slaves.
  • Some states denied slaves the right to carry firearms, drink liquor, or leave the plantation without their master's written consent.
  • Because slaves were proscribed from reading or writing, American slaves adopted a strong oral tradition--passing down songs, prayers, laments, and stories through music and storytelling.
  • Industrious slaves found that they could sell a surplus of these crops at Sunday markets for a cash profit.

• Toward a Welfare State

  • Critics of the program noted that many jobs created under WPA were not essential or even necessary, but its supporters consistently emphasized that creating opportunities for the unemployed, as opposed to providing for them in cash or in kind, was invaluable.
  • The National Youth Administration focused on providing education and work for Americans between the ages of 16 and 25.
  • The public utility of projects carried under WPA cannot be overestimated.
  • Essential infrastructure grew in urban and rural areas that were also revitalized and beautified.
  • The purpose was to stimulate corporations to distribute earnings and thus put more cash and spending power in the hands of individuals.