The Danish West Indies () or Danish Antilles or Danish Virgin Islands were a Danish colony in the Caribbean, consisting of the islands of Saint Thomas with ; Saint John () with ; and Saint Croix with . The islands have belonged to the United States since they were purchased in 1917. Water Island was part of the Danish West Indies until 1905, when the Danish state sold it to the East Asiatic Company, a private shipping company.
The Danish West India-Guinea Company annexed uninhabited St. Thomas in 1672; annexed St. John in 1718; and bought St. Croix from France (King Louis XV) on June 28, 1733. When the Danish West India-Guinea Company went bankrupt in 1754, King Frederik V of Denmark–Norway assumed direct control of the three islands. Britain occupied the Danish West Indies in 1801–1802 and 1807–1815 during the Napoleonic Wars.
Danish colonizers in the West Indies aimed to exploit the profitable triangular trade, involving the export of firearms and other manufactured goods to Africa in exchange for slaves, who were then transported to the Caribbean to work the sugar plantations. Caribbean colonies, in turn, exported sugar, rum and molasses to Denmark. The economy of the Danish West Indies depended on slavery. After a rebellion, slavery was officially abolished in 1848, leading to the near economic collapse of the plantations.
In 1852, the Danish parliament first debated the sale of the increasingly unprofitable colony. Denmark tried several times to sell or exchange the Danish West Indies in the late 19th and early 20th centuries: to the United States and to the German Empire, respectively. The islands were eventually sold to the United States for $25 million () which took over the administration on 31 March 1917 and renamed the territory the United States Virgin Islands.
History
Foundation
Merchants in Copenhagen asked King Christian IV for permission to establish a West Indian trading company in 1622, but, by the time an eight-year monopoly on trade with the West Indies, Virginia, Brazil and Guinea was granted on 25 January 1625, the failure of the Danish East India and Iceland Companies and the beginning of Danish involvement in the Thirty Years' War dried up any interest in the idea. Prince Frederick organized a trading mission to Barbados in 1647 under Gabriel Gomez and the de Casseres brothers, but it and a 1651 expedition of two ships were unsuccessful. It was not until Erik Smit's private 1652 expedition aboard the Fortuna was successful that interest in the West Indies' trade grew into an interest in the creation of a new Danish colony.
Smit's 1653 expedition and a separate expedition of five ships were quite successful, but Smit's third expedition found his two vessels captured for a loss of 32,000 rigsdaler. Two years later, a Danish flotilla was destroyed by a hurricane in August. Smit returned from his fourth expedition in 1663 and formally proposed the settlement of St. Thomas to the king in April 1665. After only three weeks' deliberation, the scheme was approved and Smit was named governor. Settlers departed aboard the Eendragt on 1 July, but the expedition was ill-starred: The ship hit two large storms and suffered from fire before reaching its destination, and then it was raided by English privateers prosecuting the Second Anglo-Dutch War, in which Denmark was allied with the Netherlands. Smit died of illness, and a second band of privateers stole the ship and used it to trade with neighboring islands. Following a hurricane and a renewed outbreak of disease, the colony collapsed, with the English departing for the nearby French colony on Saint Croix, the Danes fleeing to Saint Christopher, and the Dutch assisting their countrymen on Ter Tholen in stealing everything of value, particularly the remaining Danish guns and ammunition.