U.S. Virgin Islands
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The Virgin Islands were originally inhabited by the Ciboney, Carib, and Arawaks. The islands were named by Christopher Columbus on his second voyage in 1493 for Saint Ursula and her virgin followers. Over the next two hundred years, the islands were held by many European powers, including Spain, Great Britain, the Netherlands, France, and Denmark-Norway.
The Danish West India Company settled on Saint Thomas in 1672, on Saint John in 1694, and purchased Saint Croix from France in 1733. The islands became royal Danish colonies in 1754, named the Danish-Westindian islands (Danish: De dansk-vestindiske øer). Sugarcane, produced by slave labor, drove the islands' economy during the 18th and early 19th centuries, until the abolition of slavery by Governor Peter von Scholten on July 3, 1848.
For the remainder of the period of Danish rule, the islands were not economically viable and significant transfers were made from the Danish state budgets to the authorities in the islands. In 1867 a treaty to sell Saint Thomas and Saint John to the United States was agreed, but the sale was never effected. A number of reforms aimed at reviving the islands' economy were attempted, but none had great success. A second draft treaty to sell the islands to the United States was negotiated in 1902 but was defeated in the upper house of the Danish parliament in a balanced ballot (because the opposition literally carried a 97-year old life member into the chamber).
The onset of World War I brought the reforms to a close and again left the islands isolated and exposed. During the submarine warfare phases of the First World War, the United States, fearing that the islands might be seized by Germany as a submarine base, again approached Denmark with a view to buying them. After a few months of negotiations, a selling price of $25 million in United States gold coin was agreed (this is equivalent to $580 million in 2013 dollars). At the same time the economics of continued possession weighed heavily on the minds of Danish decision makers, and a consensus in favor of selling emerged in the Danish parliament.
The Treaty of the Danish West Indies was signed in August 1916, with a Danish referendum held in December 1916 to confirm the decision. The deal was finalized on January 17, 1917, when the United States and Denmark exchanged their respective treaty ratifications. The United States took possession of the islands on March 31, 1917 and the territory was renamed the Virgin Islands of the United States. Every year Transfer Day is recognized as a holiday, to celebrate the acquisition of the islands by the United States. U.S. citizenship was granted to the inhabitants of the islands in 1927.
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