What was the loophole in the Neutrality Acts passed by Congress in the mid-1930's?

Question

What was the loophole that in effect gave a reward to agressor nations in the Neutrality Acts passed by Congress in the mid-1930's?

Answer 1

~There were none, insofar as the intent and purpose of the Acts were concerned. The '35 and '37 Acts were pretty tight. The '39 Act allowed FDR and US manufacturers do whatever they pleased with whomever they pleased, for cash, by virtue of Section 2, paragraph c. This didn't reward aggressors, per se. It simply allowed FDR and US commercial enterprises to claim the US was still neutral while making a quick buck by providing arms and materials to belligerent states of their choosing at the expense of their adversaries. Actually, anybody could and did buy US munitions under the '39 act but those who could stalk the sea lanes fared better because they could blow the hell out of anyone carrying arms bought in the US as soon as they left US waters, much as was intended when FDR decided he wanted to help the Brits while pretending to be neutral.

Answer 2

I do not purport to know where the markets will go or what impact this will ultimately have on the economy. However, it is difficult to have confidence in a massive government program such as this. The reality is, the situation was graver than any of the politicians or market pundits have been willing to acknowledge. The system must have been on the brink of an all out total utter collapse. A problem that is that serious can't be resolved quickly. Therefore, I question the euphoria that exists in the stock market today. The injection of liquidity may still not be enough. It is likely to put the balance sheets of the various central banks in question. In fact the government is now bailing out the Fed. Who will bail out the government?

Answer 3

I don't know what you are talking about; nor do I know which nations you consider the aggressors. (People are weird, and I don't know you.)

I'm not up on all the contents of the neutrality stuff, but I do know that during this time, mid thirties, until 1937, we continued to sell energy sources, like gas and oil, to nations I consider aggressors, as well as technology and metals, etc.

In 1937 Roosevelt banned the export of these goods to Japan because of their criminal aggression and we cooled off towards Germany, too, but not as much as in 1939.

Despite any neutrality wishes of the people FDR was astute enough to develop the Lend/Lease Act to aid Britain, and later Russia.

Answer 4

go read a book.