GoodforUSBusiness

France and England were financing their war with US loans. In addition, they were buying massive amounts of arms from the US on credit. Germany also purchased arms, but in smaller amounts. it came to a point in the war were Britain and France were loosing against Germany. As the U.S. had huge economic investments within Britain and France, the U.S. couldn’t afford for them to lose as Britain and France wouldn’t be able to pay them back, and if Britain and France couldn’t pay back the loans to the U.S., the US's economy could collapse.
 * Thes****is -**The main reason why America went into the war was to protect its investments and make sure that they got back the money they loaned to other countries.



__Exports__ Main Idea: Trade impacted the United States in World War I because while President Woodrow Wilson claimed the US were to stay an equilibrium, he exported materials to Great Britain and France to help then with their battle against Germany. From 1913 to 1917 exports increased about 2.500 billion dollars. This form of exporting led to a boost in the economy at this time.

__Loans__ Main Idea's: Loans to the Belligerents to avoid serious financial situations which would affect the US in a negative way. Germany owed 27 billion dollars while France & Britain owed 2 billion dollars to the US. Britain owed damage payments to the U.S because Britain intercepted one of their ships. They tried to figure out if it was intentionally or if it was an accident. Since the beginning of the war the National City Bank received instructions for paying $50,000,000 for American goods. This made the size of the business increase by a good amount. The European Government’s credits were reducing fast due to owing conditions, too. The Russian Government had ordered a great amount of manufactures that their cash credit had severely dropped. The government asked the U.S if they were allowed to have an overdraft. They were offering the U.S gold that would be deposited into our bank. The gold deposited about some five million dollars.

__Unemployment__ Main Idea: The annual earnings for a full-time manufacturing employee rose 23%. It caused many of the unemployed to have their money become worthless in the United States, There was the fact that many of the factories closed after world war two. Many of the unemployment in the United States led little steps to the Great Depression, when men returned for the war a lot of the factories were not needing many people and the Industry productions were slowing down. Many unemployed people were holding up their jobs.



Source Citations:

Dykstra, Dr. Robert R., Dr. Gerald Zahai, and Chris Cyphers. "U.S. Entry into World War 1." Lecture. Internal Factors. University at Albany History Department, Albany. //American, Political and Social History II//. 19 Apr. 1997. Web. 7 Dec. 2009. .

Rockoff, Hugh. "US Economy in World War I". EH.Net Encyclopedia, edited by Robert Whaples. February 10, 2008. .

"U.S. Policy on War Loans to Belligerents." Letter to President Woodrow Wilson. 1914-1915.//WW1//. Brigham Young university Library, Feb. 1996. Web. 7 Dec. 2009. .