On this day, the US Senate passed the Neutrality Act. It would then go on to be signed into law on 4 November 1939.
The new act allowed for arms trade with nations fighting wars (Great Britain and France) on a ‘cash-and-carry’ basis, thus in effect ending the arms embargo. Furthermore, the Neutrality Acts of 1935 and 1937 were repealed, American citizens and ships were barred from entering war zones designated by the president, and the National Munitions Control Board (which had been created by the 1935 Neutrality Act) was charged with issuing licenses for all arms imports and exports. Arms trade without a license became a federal crime.