Ace the 2026 APUSH Challenge – Dominate AMSCO AP U.S. History Period 7 Practice!

The condition under which Britain and France could purchase goods from the United States before WWII was through cash transactions and by transporting the goods themselves. This policy was primarily established due to the Neutrality Acts, which were aimed at keeping the United States out of foreign conflicts. Before the Lend-Lease Act was enacted in 1941, American laws restricted the sale of arms and war supplies to warring nations unless they paid cash upfront and arranged for their own transportation. This system was colloquially known as "cash-and-carry." Under this arrangement, Britain and France were able to maintain some access to American military and economic resources without directly involving the U.S. military in the conflict at that time.

In contrast, options involving credit or barter would not have aligned with the cash-and-carry policy the U.S. had adopted, which was designed to limit American entanglement in European wars while still allowing trade to continue.