America’s neutrality in the war meant that her banks could lend money to either of the warring sides. However, America’s neutrality is somewhat questionable as she was the main manufacturer and supplier of arms to the warring nations, especially to the Allied side, which was against the Imperial Germans. In addition, America supplied both financial aid and other goods such as army attire to both France and Britain. Her neutrality is also doubtful as she sought the affirmation of her right to immunity from submarine attacks from German submarines. Moreover, America kept a small army active in anticipation for joining the war, she sent out army divisions into Europe, whose tasks were to help out France and Britain. This neutrality was, however, stopped President Wilson after America received the Zimmerman Telegram, intercepted by Britain on its way to Mexico from the German government. The telegram sought to establish an alliance between Imperial Germany and Mexico against America. It also assured Mexico of Germany’s assistance in reclaiming the former’s land, which had been acquired by America (Venzon, p. 516).
Wilson, who was re-elected because of his insistence on neutrality and seeking an amicable end to the war, was extremely aggravated by the Zimmerman Telegram, resulting in his decision to declare war on Germany. According to Wilson, the move by Germany to declare unrestricted submarine warfare on all marine vessels was evidence of Germany’s disregard for democracy. Wilson saw this as reason enough to go to war against Germany because the German’s had already sunk an American ship, Lusitania, resulting in the death of many Americans.