NEUTRALITY LAW

Taranaki Central Press, Volume IV, Issue 422, 1 May 1937, Page 5

NEUTRALITY LAW

MEASURE BY CONGRESS "CASH AND CARRY PLAN” Supplies To Belligerents In Wartime Press Association —Copyright. Washington, April 30. The Senate and the House of Representatives enacted the permanent neutrality law with a discretionary “cash and carry” clause. This means, that in time of war belligerents may be supplied with certain goods other than war materials provided that they pay cash and carry, them in their own ships. A cable dated March 4 stated that the Senate passed by 63 votes to 6 Senator Key Pittman’s permanent neutrality resolution providing for an embargo on arms and munitions as soon as the President proclaims a war or civil wai- anywhere in the world, and a prohibition of loans to all belligerents, rejecting several amendments, including one by Senator W. E. Borah, to make the “cash-and-carry” provisions, which forbid American vessels in time of war carrying embargoed commodities, but permit belligerents to buy in America on a cash basis and carry purchases in their own ships discretionary instead of mandatory. Senator Hiram W. Johnson led the. opposition, insisting that the measure would establish a “scuttle and run” policy which was worthless to keep America out of a war. Later the House of Representatives by an overwhelming majority accepted a different neutrality plan, the Mcßeynolds one, patterned more closely on the President’s desire to have discretionary power in applying war-time bans. The two resolutions then went to a conference committee whose purpose was tW try to reach a compromise acceptable to both Houses. The vital point of difference was whethei- or not the outbreak of war should be an automatic signal for the adoption of neutrality measures. Both included the “cash-and-carry” plan.