MOBILIZING US INDUSTRY
FOR THE GREAT WAR
By Michael A. Martorelli
America’s formal participation in the
Great War that began enveloping Europe
in August 1914 did not begin until April
1917, when Congress voted to declare war
on Germany. However, in January 1915
many domestic banking firms and manu-
facturers started to provide financing and
equipment for the Allied armies of Great
Britain, France and Russia.
During the periods of American neu-
trality and the country’s active military
involvement, mobilizing for war presented
unprecedented challenges. The recently
industrialized economy had to produce
new equipment such as tanks, airplanes
and machine guns, as well as raw materials
such as coal, steel and linen. Neither gov-
ernment leaders nor the nation’s business
executives fully understood the difficulties
inherent in providing those resources.
Both entities had to learn new practices
and create new agencies for coping with
the unprecedented demands of manpower
and material.
Mobilization did not go smoothly. But
it did proceed, as the United States finally
produced previously unheard-of quanti-
ties of equipment and helped sustain the
Allied armies as they achieved the ulti-
mate victory over the Central Powers.
The Government Was
Officially Neutral, But…
The shooting in Europe started in early
August 1914. Shortly afterwards, President
Woodrow Wilson issued a proclamation
of American neutrality. At the time, few
American officials were considering the
potential involvement of United States mil-
itary forces in the hostilities. However, Wil-
son and his advisors were soon forced to
begin considering the potential economic
role of America in the European conflict.
16 FINANCIAL HISTORY | Fall 2017 | www.MoAF.org
Both Great Britain and France were
sounding out the global banking power
J.P. Morgan and Company about loans
to purchase war materials. Secretary of
State William Jennings Bryan denounced
the idea and reiterated the government’s
intent to remain neutral. In September,
other advisors persuaded President Wil-
son to adopt policies supporting a recov-
ery from the industrial recession that had
begun in July. One of those involved
allowing the Morgan bank and other insti-
tutions to provide the Allied powers with
credits and loans to facilitate the purchase
of munitions and other war supplies.
In October, Great Britain and Rus-
sia both began to deal with Remington
Arms Company and Winchester Repeat-
ing Arms Company for the one military
“Aeroplane” manufacturer in the United States
constructing the body of a plane for use in World
War 1, 1917.