Cash and Carry symbolized what was to follow. It aligned the US with democracies, reiterated American concern and friendship for Western Europe and made it clear that it would resist any attempt to upset the balance of power in Europe. America would sell arms to democracies as long as the democracies picked them up and carried them off. ..... with the fall of Poland in 1939 a period of stagnation set in on the Western Front. Americans called it a "Phony War" and saw no pressing reason to strain themselves and build up. FDR barely raised the Regular Army from 210k to 217k and asked for an Army Budget of 853 mil which was cut by 10% by Congress. The new German Offensive in 1940 brought on new verbal but limited practical response from the US. The president asked for supplemental troop increases to 255k, and after hearing desperate appeals from Army Chief of Staff George C Marshall, raise the force to 375k. ... The Nazi's Rolled on. Churchill requested 40 to 50 American Destroyers to protect the Britain's Atlantic Supply Line. Churchill called it life or death, FDR was reluctant to act. On June 5, with the fall of France imminent FDR commented to a Cabinet official that it would require an act of congress to transfer the ships and implied he was not ready to ask for such a bill. On June 14 French Premier appealed to FDR to send troops, in Frances hour of need, to which FDR replied even if he wanted to act, he had no troops to send overseas, France signed the armistice with Germany a week later. The face of the conflict had changed, now only Britain stood between the US and Germany. While Germany was no direct threat, if Britain were defeated and Germany acquired the UK's Navy the everything would change, and so while FDR still promised in speeches he would not send American Boys to fight another European War something had to be done. The British still acquired material on a cash and carry basis and lacked the means to protect the Atlantic Convoys. On July 20, Churchill made another eloquent plea for destroyers, " Mr President, with great respect I must tell you in all the in the long history of this great world this is a thing to do now."
The British were losing merchant shipping in the Battle of the Atlantic in appalling numbers, the Battle of Britain was at its peak, and the German General Staff was preparing plans for invasion of the British Isles. The President allowed private groups to work out the details of a destroyer-for-basis deal, which eventually (Sept. 2) gave the British 50 over age American destroyers in return for rent free basis on a British possessions from Bermuda to British Guiana.
There was, meanwhile, a growing tension between the War Department and the White House. General Marshall reasoned that the only way to defeat Hitler was to fight and defeat the German Army in Northwestern Europe.
Congress proved more willing to act than the President ... In late August of 1940, Congress authorized the President to call the National Guard and other reserves to active duty for one year and on September 16th, it provided for selective service for one year. Both measures limited the employment of the troops to the Western hemisphere.