On August 31, 1935, President Franklin D. Roosevelt signs the Neutrality Act, or Senate Joint Resolution No. 173, which he calls an “expression of the desire…to avoid any action which might involve [the U.S.] in war.” The signing came at a time when newly installed fascist governments in Europe were beginning to beat the drums of war.
In a public statement that day, Roosevelt said that the new law would require American vessels to obtain a license to carry arms, would restrict Americans from sailing on ships from hostile nations and would impose an embargo on the sale of arms to “belligerent” nations. Most observers understood “belligerent” to imply Germany under its new leader, Adolf Hitler, and Italy under Benito Mussolini. It also provided the strongest language yet warning other countries that the U.S. would increase its patrol of foreign submarines lurking in American waters. This was seen as a response to Hitler’s March 1935 announcement that Germany would no longer honor the terms of the Treaty of Versailles, which prohibited Germany from rebuilding her military; he had then immediately stepped up the country’s submarine production.