Mickey Rooney became the second-youngest nominee for Best Actor at 19, and the first teenager to be nominated for an Academy Award, for his performance in Babes in Arms.
Ambassador to Britain urged President Franklin D. Roosevelt and the studio head Harry Cohn to cease showing the film overseas because "it will cause our allies to view us in an unfavourable light".
Among those who campaigned in favour of the film were Hedda Hopper who declared it "as great as Lincoln's Gettysburg speech", while Sheilah Graham called it the "best talking picture ever made".
Frank Capra, the director, and James Stewart, the film's star were considered front runners to win awards.
The New York Film Critics Award was given to Wuthering Heights after thirteen rounds of balloting had left the voters deadlocked between Mr. Smith Goes to Washington and Gone with the Wind.
The Los Angeles Times printed a substantially accurate list of winners, despite a promise to withhold the results of the voting, so many of the nominees learned before arriving at the ceremony who had won.
Following the banquet, Capra opened proceedings at 11pm with a short speech before introducing Bob Hope who made his first appearance as host of the awards.
Mickey Rooney presented an Academy Juvenile Award to Judy Garland, who then performed "Over the Rainbow", a "Best Song" nominee from The Wizard of Oz.
Hattie McDaniel became the first black performer to win an Academy Award and in expressing her gratitude promised to be "a credit to my race" before bursting into tears.
This led Academy officials to examine ways that the voting process, and more importantly, the results, would remain secret in future years.