Analysis: Lend-Lease Act

Date: March 11, 1941

Author: Seventy-Seventh US Congress

Genre: law; legislation

Summary Overview

From the outbreak of World War II, the United States had maintained a formal policy of neutrality, in keeping with its isolationist stance since the conclusion of World War I. However, the Lend-Lease Act, passed in March 1941, marked a key step in the nation's steady shift from isolationism to direct involvement in the war. Lend-lease allowed the United States to provide supplies such as weapons, airplanes, and food to selected allies without requiring the recipients to pay for the goods as long as the president deemed the transactions beneficial for US national security. Proposed by President Franklin D. Roosevelt in late 1940, the Lend-Lease Act primarily allowed the United States to provide vital economic and military support to Great Britain, which by that time stood as the greatest remaining challenger to the spread of Nazi domination in Europe.

Defining Moment

After World War I, the United States returned to its traditional isolationist foreign policy. The economic struggles of the Great Depression reinforced popular opinion that the nation should use its resources internally rather than spend money and expend effort on conflicts abroad. During the 1930s, rising fascist and militant governments in countries such as Spain, Germany, Italy, and Japan heightened the threat of another world war, spurring the passage of a series of Neutrality Acts beginning in 1935. The first of these laws banned certain economic activities between Americans and warring nations, including the sale or transport of weapons and the lending of money. Many believed that such activities had factored into the United States choosing to enter World War I.

Subsequent Neutrality Acts loosened the tight limits. In the Neutrality Act of 1937, Roosevelt successfully argued for the inclusion of a “cash-and-carry” policy on sales of nonwar goods, including raw materials such as oil, to warring nations. All sales had to take place on a strictly cash basis, and any belligerent nation purchasing US goods was required to collect and transport them at its own expense and risk. Although cash-and-carry was broadly written, in practice, the policy was in place to sell goods to Great Britain and France.

Germany's rapid, aggressive advance through Europe in 1939 spurred further aid to the troubled Allies even as the American public opposed entering the conflict. The Neutrality Act of 1939 expanded the existing cash-and-carry policy to allow the sale of US weapons and other war goods to belligerent nations. Direct aid in the form of loans remained forbidden, however, and US ships were barred from transporting war matériel.

As 1940 progressed, however, Great Britain's ability to pay for the war goods it needed began to flag. Prime Minister Winston Churchill appealed to Roosevelt to institute a new policy under which the United States could provide goods to Britain without demanding immediate payments. Offering this type of direct aid presented clear challenges for US policy makers. Showing obvious support for the British risked drawing German ire and a declaration of war on the neutral United States, and US public opinion remained opposed to entering the war. Isolationists argued that using US tax dollars and weapons to help the British took away from reserves needed in case of attack. On the other hand, neither the American public nor its leaders wanted to see Great Britain defeated. The two nations had long-standing cultural ties, and they had been close military and political allies for decades. Therefore, whether the Lend-Lease bill would be made law was a question of not only economics but also national priorities and sentiment.

Author Biography

The Lend-Lease Act was passed by Congress in early 1941, but the idea of lend-lease began with Roosevelt, who had served as president since 1933, dedicating much of his administration's energy to the federal programs of the New Deal that sought to jumpstart the nation's troubled economy during the Great Depression. Beginning in the mid-1930s, however, Roosevelt began to develop a foreign-policy stance in response to the rise of fascist regimes in Europe that diverged from the isolationist policies favored by Congress. Roosevelt saw a German victory in all of Europe as a stepping stone to Nazi attempts to conquer the United States, and as president he developed a close political relationship with British prime minister Churchill. Roosevelt's interventionist sentiments helped push overall US public opinion to support the Allied cause and, after the attack on Pearl Harbor in December 1941, to support direct US involvement in the war.

Document Analysis

The Lend-Lease Act established several key foreign policy points as the United States balanced its neutrality with support for Allied resistance of German aggression in the early years of World War II. Proposed by Roosevelt primarily as a way to help Great Britain, the act seeks to carefully address isolationist concerns while granting the president great authority to provide economic and military aid. Lend-lease seeks to meet these dual purposes by closely linking US national defense with the security of other countries identified by the president, reinforcing Roosevelt's claims that lend-lease was a necessary policy but acknowledging the majority's desire for formal neutrality.

From the beginning, the act announces its intent “to promote the defense of the United States,” and continues to use language presenting a broadly defined range of arms and armaments as tools of defense rather than tools of intervention. The continued emphasis on lend-lease as a method of defense sought to win the votes of members of Congress with isolationist leanings by shaping the policy as a defensive measure that aligned with the ideals of the America First Committee, a prominent anti-interventionist group, rather than an interventionist one meant to shape the outcome of the conflict in Europe. Portions of sections 3 and 10 reinforce US neutrality by barring US ships from transporting belligerent vessels or entering disputed seas and by asserting that lend-lease “shall [not] be construed to change existing law relating to the use of the land and naval forces of the United States.” Section 6 authorizes use of US tax dollars to fund lend-lease activities, but it does not call for the levying of new taxes to support the policy.

Lend-lease invests a great deal of power in the president by allowing him “when he deems it in the interest of national defense” (section 3) to order the manufacture, sale, or transfer of military goods and plans to any recipient considered vital to national security. The law also allows the chief executive to make additional orders and policies as necessary to carry out the law. However, section 5 of the law requires the president to report on the implementation of lend-lease to Congress unless providing details about the process would endanger national security. The law does not, however, give the president authority to place any US personnel or military goods into the conflict in the name of the United States.

Glossary

convoy: to accompany or escort, usually for protection

munition: usually in the plural; materials used in war, especially weapons and ammunition

promulgate: to make known by open declaration; proclaim formally, such as a law or decree

prototype: the original or model on which something is based or formed

Bibliography and Additional Reading

“American Isolationism in the 1930s.” Milestones. US Dept. of State Office of the Hist., 2013. Web. 6 Oct. 2014.

Berinksey, Adam. In Time of War: Understanding American Public Opinion from World War II to Iraq. Chicago: U of Chicago P, 2009. Print.

Capet, Antoine. “Lend-Lease Act.” Britain and the Americas: Culture, Politics, and History—A Multidisciplinary Encyclopedia. Ed. Will Kaufman and Heidi Slettedahl Macpherson. Vol. 1. Santa Barbara: ABC-CLIO, 2005. Print.

Zheng, Guoqiang. “Lend-Lease Act (1941).” The American Economy: A Historical Encyclopedia. Rev. ed. Vol. 1. Santa Barbara: ABC-CLIO, 2011. Print.