For the United States the start of the war in Europe put them in an odd position in the geopolitical world. They didn’t have great relations with the German Empire. Granted they had improved since the Island War in the mid-1890s but they still haven’t recovered to what they were in the aftermath of the end of Spanish-American War in 1875. That said, they were leap and bounds better than their relations with the British with almost everyone in the halls of power in Washington DC detested the British. Outside the junior senator from New Jersey, Woodrow Wilson and a small set in the Democratic Party everyone in Washington was more or less an Anglophobia.
One of the first acts made by the United States that effected the war came from an unlikely source. Secretary of Treasury Hiram Johnson who was rumored to be in the hunt of the 1916 Republican Ticket, acted on July 13th 1915 that changed America forever. As it was becoming increasable clear that a war was about to spread from the Balkans to the rest of Europe they when about cashing out their investments for dollars. Then in turn, they would turn those dollars into gold to bring their money back home. Had they done this they would had stripped a sizable amount of the gold used to back the dollar out of the US and taken it back to Europe. Johnson couldn’t allow this to happen because if it did the value of the dollar would had fallen greatly and risked the US falling into a depression. He ordered the closing of all of the stock exchanges across the nation for three months.
This was a bold and unprecedented move by Johnson. Had the US still been a debtor nation in 1915 this could had caused major issues. But the US hadn’t been a debtor nation since the late 1890s and held more debt of European nations than the other way around. This allowed the US to stay on the gold standard instead of what was happening in Europe where many nations were ending the gold standard as part of their efforts to pay for the war. It also increased the value of the dollar against the European currencies.
With the possibly of a depression passed the US watched the Europeans go to war. Privately many in Washington said or thought, let the Europeans kill each other and we will make a profit selling to both sides. Because outside its defensive treaty with the Republic of the Rio Grande, the US wasn’t tied to another nation on the face of the Earth. And with the heavy control of foreign affairs the US had in Rio Grande they knew they wouldn’t be tied to another nation beside Rio Grande either. As such they wouldn’t get into the mess this war was quickly becoming. Some in the White House, including President Roosevelt however, believed that it was more a question of when and not if the US would be forced into this war.
On July 30th President Roosevelt gave his Armed Neutrality Speech when he was speaking to a crowd in Boston. In this speech, which was beautifully written and given by Roosevelt he stated that America would not enter the war. However, they should not allow their guard down. They needed to maintain a strong military arm so they could trade with the world and not bow to anyone on the high seas. He called a further buildup of the navy and a smaller one of the army on top of what was already going on at the moment. Congress however fell short of what Roosevelt wanted and only agreed to four more battleships and five more regiments to be built up with a defense bill passed in the next month. Not the six battleships, two battlecruisers, and ten more regiments Roosevelt wanted.
There was also the issue of loans to belligerence powers. The Unites States became a lender nation in the late 1890s and many banks were being swamped with request from both sides for loans to pay for the war. President Roosevelt and the bulk of the Congressional Leadership didn’t want to put the nation in position they had loan so much money to one side they would be forced to join that side just to make sure they had join that side to get their money back. On June 27th the Federal Reserve issued a warning to the banks about loaning money to belligerence powers. It stated that unsecured loans to belligerents would not be insured, and that banks who have made unsecured loans to belligerents of greater than 33% of their reserves would not be insured and lose access to privileges from the Federal Reserve System
Roosevelt however was also hedging his bets for the worse if the US was forced into war. He ordered his Secretary of War George Cortelyou, Secretary of Navy Charles J Bonaparte, with the senior flag officers of both the Army and Navy to start to draw up plans for an invasion of the Dominion Canada, the Caribbean, and Imperial Federation of Australia and New Zealand[1]. To say that was bold was an understatement. Both Canada and the IFANZ had entered the war against the Central Powers. But the US was already thin on troops and even with the build up they had only taken some of the pressures off the small army the US kept. After a few rounds of talks it was decided that Canada and the Caribbean would take priory over the IFANZ in the event of the US being driven into war with the Entente.
At the same time, Roosevelt order Secretary of State Elihu Root to start working on drafting on a note to be passed to Whitehall in the event the US was forced into a war with the Central Powers. The US wanted nothing to do with Africa which besides the sole German colony in China was the only place Germany held territory outside of Europe. And said German colony in China was being attacked by the Japanese and the Japanese were unlikely to give it up. He told Root to explain it in this note that the US would not committed its army to Europe without territorial cession by the British elsewhere in the world. After talking with Root it was decided that what they would hint at to the British these territorial cessions would need to be the Sandwich Islands, the British Virgin Islands, Bermuda, Machias Seal Island, North Rock, and finally surrendering the Alaskan-Canadian Border Dispute[2] with the American version of the border being the accepted border.
[1] ITL because of the long shadow the US currently cast over the SW Pacific, Australia and New Zealand merged into a single nation in 1899.
[2] Because of the piss poor relations between London and Washington this hasn’t been put to bed yet.