Virgin Islands Prepayment Agreement

State:
Multi-State
Control #:
US-0238-WG
Format:
Word
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Prepayment Agreement
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Formal transfer of the islands occurred on March 31, 1917, along with a U.S. payment to Denmark of $25,000,000 in gold coin. United States colonial policy distinguished between citizens and "nationals," or inhabitants of colonies to whom the rights of U.S. citizenship were not conferred.

As a result of their talks, a treaty was signed on October 24, 1867, in which the Americans would acquire St. Thomas and St. John in exchange for 7.5 million dollars in gold. At the King's behest, a referendum was held on the islands on January 9, 1868.

The cost of living in the U.S. Virgin Islands is higher than on the U.S. mainland. On average, apartments cost $2,000 per month. A two-bedroom house costs at least $285,000. Not everyone can afford health care on the U.S. Virgin Islands.

During World War I, Denmark finally sold Saint Thomas, Saint John and Saint Croix to the U.S. for $25 million in gold coin.

The U.S. needed a military base in the Caribbean, and due to its good natural harbour St. Thomas was an obvious choice. After Denmark lost the Second Schleswig War in 1864, the U.S. was also concerned that Austria would claim the Danish islands as spoils of war.

In 1917, the United States purchased the Danish part for $25 million, mainly for strategic reasons to assure tranquility in the Caribbean Ocean. U.S. citizenship was conferred on U.S. Virgin Islanders in 1927.

Formal transfer of the islands occurred on March 31, 1917, along with a U.S. payment to Denmark of $25,000,000 in gold coin. United States colonial policy distinguished between citizens and "nationals," or inhabitants of colonies to whom the rights of U.S. citizenship were not conferred.

The U.S. has five permanently inhabited territories: Puerto Rico and the U.S. Virgin Islands in the Caribbean Sea, Guam and the Northern Mariana Islands in the North Pacific Ocean, and American Samoa in the South Pacific Ocean.

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Virgin Islands Prepayment Agreement