The Virgin Islands were of long interest of the United States, "…but as far back as the Civil War the U.S. was aware of their value as a possible U.S. Naval depot, commanding as they do the most important sea approaches from the Atlantic to the Caribbean". Following the decline of the sugar industry, the Danish began to have interest in selling the islands, but the United States senate was disinterested in the deal because of the building of the Panama Canal which significantly affect global trade and specifically United States Trade. Years later, there was mutual interest due to the fact that Denmark was struggling financially from war with Prussia and Austria, the United States had interest because Denmark was under threat of German invasion which caused fear that the Germans would then inhabit the Virgin Islands. In January 1917, the United States would agree to purchase the Virgin Islands for "$25 million ($295 per acre), then regarded as an exorbitant sum for land that amounted to hardly more than a tenth of the size of Rhode Island, the smallest state" as well as a recognition of Danish sovereignty over the whole island of
Greenland. The first Transfer Day celebration/ceremony occurred on March 31, 1917. The news was immediately telegraphed to New York, then cabled to San Juan, Puerto Rico, flashed by wireless to the cruiser Hancock in the harbor at Charlotte Amalie, and carried ashore to St. Thomas via rowboat. There, Danish and American honor guards in white uniforms stood in formation on opposite sides of the parade ground before red-walled Fort Christian. Once the message had been delivered, at 4:48 p.m, the Danish honor guard presented arms, the Danish national anthem was played, and a cannon boomed 21 times as the red and white Danish flag was slowly lowered for the final time after 251 years of Danish rule. At 4:53 p.m. the American honor guard presented arms, a band played the "Star-Spangled Banner," and to the roar of the cannon the American flag was raised. As a last gesture, Admiral Henri Konow of Denmark and Admiral Edwin T. Pollock of the United States Navy drew their ceremonial swords. The celebration varies by year, for example in 1987, "A reenactment of the transfer will begin at 4 p.m. Tuesday on the lawns of the 1874 lime-green, white-shuttered Legislature building. That's the precise time the event originally occurred on March 31, 1917". In addition to reenacting the transfer, the Danish also replicated their departure, "The 196-foot-long, three-masted, full-rigged Danish government training ship
Danmark has sailed here from Copenhagen especially for the celebration. The
Danmark 80 cadets and 18 officers will represent the officers and crew of the Danish cruiser
Valkyrien which in 1917 carried back to Denmark the last Danish governor and his official party". == Key actors ==