Two of the islands had been in Danish possession since the 17th century and
Saint Croix since 1733. The highly profitable period of the colony had been from around 1750 to 1850 based on transit trade and the production of rum and sugar using African slaves as labor. By the second half of the 19th century the sugar production was embattled by the cultivation of
sugar beets, and although the slaves had been emancipated in 1848, the agricultural land and the trade was still controlled by the white population, and the living conditions of the descendants of the slaves were poor. At the negotiations for the
Treaty of Vienna after the defeat in the
Second Schleswig War in 1864, Denmark had tried to use the islands as a trade-in for
South Jutland, but the Prussian Government was not interested. However, the
United States Senate did not ratify the treaty due to concerns over a number of natural disasters that had struck the islands and a political feud with and the possible impeachment of President
Andrew Johnson. On 24 January 1902 Washington signed a convention on the transfer of the islands for a sum of US$5,000,000. One chamber of the Danish parliament—the
Folketing—passed the proposal, but in the other chamber—the
Landsting—it failed with 32 votes against 32. In particular the conservative party
Højre opposed it on the grounds that the treaty did not ensure the local population a vote on the matter, and that it did not grant them
US citizenship or freedom from customs duty on the export of sugar to the United States. According to historian Povl Engelstoft, there was no doubt that
Council President Johan Henrik Deuntzer was privately against the sale even though his party, the
Venstre Reform Party, supported it. When the Landsting failed to pass the proposal, Deuntzer made a statement that neither did he see a reason for the
cabinet to step down, nor would he dissolve the Landsting or assume responsibility for any further work related to the sale. This brought the process to a halt. ==Negotiations==