ocracy has been the basis of American foreign policy after World War II; future presidents defeated communism in similar, more modern, ways.Prior to American entry in to World War II, Wilsons foreign policy with Europe was to try and maintain a balance of diplomatic relations between both sides of the conflict. Actions like this have been taken previous to Wilson, seen with Jefferson and Madison during the Commercial Warfare era with Britain and France. The events the brought America into the war, were very similar to those of the Commercial Warfare period. Both involved the usage of international trade barriers, and a naval war. Wilsons policies at this time were very similar to those of Jefferson, neutrality was key, but in both situations involvement on one-side of the conflict could not be avoided. It is still Americas goal to open new foreign markets, and raw materials through diplomatic policies.The dominant American reaction in August 1914 was relief that America was far removed from the scene of conflict, coupled with conviction that the United States had no vital stake in the outcome. Wilson new that the war might have a disastrous effect on the American economy had he not made actions to prevent a crash on Wall St. He closed the stock market on July 31, 1914 to prevent the deflation of European securities, causing a possible panic. Foreign ships were allowed to fly the American flag when transporting American goods to avoid seizure at sea. The government discouraged loans by American bankers to belligerent governments because they violated the spirit of neutrality. During the years of war without American military involvement, it was very difficult to have neutrality of trade. At the start of the war Britain ruled the seas, and rarely allowed trade with Germany, but never issued a formal statement. In time German submarines would overthrow the British cruise ships, as the owner of the sea, but this was mostly a blu...
