The Danish West Indies were islands owned by Denmark in the Caribbean. In 1754 the islands had been sold to Frederick the V of Denmark. In the Napoleonic Wars, the islands were captured by the British, but in 1815 they were returned to the Danes. In 1850, during the midst of the industrial revolution, the Danish West Indies had a population of approximately 40,000.
On this day March 31st, in 1917, the Danes sold the Danish West Indies to the U.S. for $25 million in gold. This was in the tumult of WWI, as the war did not end until the following year, so this sale would have been known world-wide. Furthermore, it would have caused unease in any of America’s enemies wondering what purpose a financially struggling country would want with these islands. The reason the U.S. purchased it was out of fear that the Germans would buy it and use it as a submarine base.
The islands were then renamed the Virgin Islands. The population as of 2010 was 109,750. The Islands had originally been called the Virgin Islands when Columbus chanced upon it, so in reality the U.S. was returning it to its original title. The Virgin Island now has over 2 million visitors a year, mostly from cruise ships.