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St. Croix Island is one of the most interesting places in the Lesser Antilles, and is today part of the US Virgin Islands. In addition to its indigenous history of habitation, the strategically located island has been passed around by almost every major empire of the era before arriving in 1917 under US rule, where it is located today and is part of an unincorporated territory and therefore not part of a US state with Senate representation or electoral votes for president. How it ended up in this situation is a fascinating discussion and its unique blend of cultures, including the Danish culture which otherwise became submerged in the US cultural mainstream in Northern US states.

Indigenous history and legacy of St. Croix

The Carib and Arawak peoples, the original inhabitants of the Caribbean, including St. Croix, left a legacy of rich cultural traditions. The Arawaks, also referred to as the Taíno, were agrarian and artistically skilled, known for cultivating cassava and creating intricate pottery and woven goods (Hofman et al., 2019). Their social structure emphasized communal cooperation and matrilineal inheritance. The Caribs, on the other hand, were renowned for their maritime skills, using expertly crafted canoes to navigate the Caribbean seas (Reid, 2009). Unlike the Arawaks, they adopted a more militant approach to defending their territories, shaping their identity as fierce warriors who inspired fear also through tales of their cannibalism (Allaire, 2013).

The enduring heritage of these groups can be seen in their sustainable agricultural practices, with cassava and other crops still prominent in local Caribbean cuisines (Gray, 2022). Furthermore, the archaeological record of the region reveals a blend of their material culture, reflecting adaptation and interaction over centuries (Haviser & Strecker, 2006).

The arrival of Europeans had profound consequences for the Carib and Arawak peoples. Colonization brought new disease, as well as violence and displacement. The Arawaks, who initially engaged with the Europeans peacefully, were the first to suffer severe losses from smallpox and influenza, leading to significant population declines (Dick, 1977). The Caribs resisted fiercely, waging prolonged battles against Spanish and other colonial forces (Hofman et al., 2019).

Over time, these indigenous populations dwindled due to a combination of enslavement and assimilation. The cultural identity of the Caribs persisted in small enclaves and through their integration with enslaved Africans, giving rise to groups like the Garifuna, who retained elements of their Carib ancestry (Palacio, 2007). Their story of resistance and survival remains a testament to their resilience (Sweeney, 2007).

The history of the Carib and Arawak peoples is integral to understanding St. Croix’s past and present. Their cultural contributions, from sustainable agriculture to craft traditions, shape the island's identity even today. The resilience of these groups, especially in the face of colonization, underscores the importance of preserving their legacy and integrating it into contemporary narratives about the Caribbean (Valdés-Pizzini et al., 2010).

Colonial struggles and European rivalries 

St. Croix’s location in the Lesser Antilles made it a critical asset during European imperial expansion in the Caribbean. Situated between the Atlantic and Caribbean trade routes, the island became a hub for the transshipment of goods and resources, including sugar and rum. The competition for St. Croix reflected the intense rivalries among European powers seeking to dominate Caribbean commerce (Røge & Kleiser, 2023).

St. Croix experienced multiple colonial transitions, each leaving an indelible mark on its identity.

- Spanish Era (1493–1625): The Spanish were the first Europeans to claim the island after Columbus’s second voyage in 1493. However, the native Caribs’ resistance and the strategic focus on larger islands led to limited Spanish development (Fenning, 1962).

- Dutch and English Period (1625–1650s): The Dutch and English shared control briefly, using the island as a base for plantation agriculture. However, their alliance disintegrated under pressure from Carib resistance and mutual distrust (McD. Beckles, 1992).

- French Control (1650–1733): The French strengthened agricultural activities, establishing sugar plantations and introducing African slaves to support the colony’s economy. Economic challenges and European wars, however, weakened their grip (Sicking, 1998).

- Danish Rule (1733–1917): Denmark purchased St. Croix from France in 1733, transforming it into a major hub of sugar production. The Danish period saw the rise of plantation culture and the reliance on enslaved labor, which became central to the island's economic and cultural fabric (Lang, 2011).

Each transition shaped St. Croix’s cultural and economic identity:

- Cultural Syncretism: The mingling of European, African, and indigenous influences under different colonial regimes created a unique cultural tapestry. French Catholicism, Danish architectural styles, and Afro-Caribbean traditions all coexist in modern St. Croix (Demeritt, 1997).

- Economic Evolution: The shifts in power reflected the island’s changing economic priorities, from subsistence farming under the Spanish to intensive plantation agriculture under the French and Danes. The profitability of sugar cultivation positioned St. Croix as an economic jewel in the colonial Caribbean (Hofman et al., 2019).

The repeated transitions between European powers highlight St. Croix’s strategic and economic significance in the Atlantic world. Each period of rule introduced new systems of governance, labor, and culture, creating a layered identity that persists today. By examining the island’s colonial struggles, one gains insight into how the intersection of global rivalries and local dynamics shaped St. Croix’s lasting legacy.

U.S. interest: expansion and strategic importance 

St. Croix, as part of the U.S. Virgin Islands, holds a pivotal place in the historical interplay of colonial ambitions and global strategy. Once a Danish colony sustained by the sugar trade and grown through the transatlantic slave trade, the island became a critical point of interest for the United States as its influence expanded in the Caribbean. The U.S.’s acquisition of St. Croix in 1917 was driven by strategic concerns, including securing maritime dominance and protecting access to the newly completed Panama Canal, including through territorial acquisitions that would enable the US Navy and its allies to install refueling stations and naval bases as needed to protect the Panama Canal from powers seeking to deny the US its best inter-coastal maritime route. This strategic importance, paired with St. Croix’s rich cultural heritage, underscores its historical role as both a victim of imperial exploitation and a linchpin in global geopolitics. The Panama Canal revolutionized global trade by providing a faster, more efficient route between the Atlantic and Pacific Oceans, significantly reducing travel distances and costs. Built between 1869 and 1914 at a cost of $400 million, the canal transformed international shipping and remains vital for global commerce (The Fuqua School of Business at Duke University, 2006).

Over the years, its usage has expanded dramatically, with traffic increasing from 1,000 ships annually in 1914 to over 13,600 by 2013. Recognizing the need to accommodate larger, modern ships, the Panama Canal Authority (ACP) initiated a $5.25 billion expansion project in 2007 ( US Army Corps of Engineers, 2008). This effort includes new locks and deeper channels, tripling the canal’s capacity and enabling the transit of larger Post-Panamax vessels. The expansion is poised to reshape global shipping, offering opportunities for Caribbean nations to develop port infrastructure and logistics hubs (Bjerg, 2022).

The canal has also been central to U.S. geopolitical strategy. Its construction was crucial for securing trade routes and military positioning. The U.S.’s acquisition of the Virgin Islands from Denmark in 1917 illustrates this strategy, as the islands’ location enhanced control over the Caribbean and safeguarded routes to the canal during World War I. For the Caribbean, the expanded canal presents both opportunities and challenges. While upgraded ports could boost regional trade and logistics, concerns about over-investment and competitiveness persist. The expansion has the potential to reshape trade dynamics, offering Caribbean economies new pathways to integrate into global markets (United Nations, 2014).

The potential for German influence during World War I significantly accelerated the United States’ efforts to acquire the Danish West Indies, including Saint Croix. U.S. officials, particularly President Woodrow Wilson and Secretary of State Robert Lansing, feared that Germany might annex Denmark and use the islands as a strategic naval or submarine base. This concern heightened after incidents like the sinking of the Lusitania in 1915, which underscored the growing threat of German naval power. To prevent such a scenario, the United States intensified negotiations with Denmark, eventually leading to the signing of a treaty in 1916 and the formal transfer of the islands, including Saint Croix, on March 31, 1917 (USDA, 2010). A similar concern also informed the US attitude towards another Danish possession, Greenland, which it occupied militarily during World War 2 for fear of Germany using it as a base from which to attack continental America or regional shipping. Multiple offers have been made to the Danes to buy Greenland over the years, which were constantly rebuffed due to Danish historical attachment to Greenland, unlike their more pragmatic view of their Caribbean colony. We see the echoes of this with President Trump’s 2019 and 2025 talks of annexing Greenland to the US.

The acquisition of 1917: the $25 million deal 

Over five decades, negotiations between Denmark and the United States regarding the Danish West Indies reflected shifting geopolitical priorities and economic considerations. Early efforts, led by Secretary of State William Henry Seward after the Civil War, were unsuccessful due to political discord and anti-expansionist sentiments. Renewed talks in the early 1900s also failed as Denmark hesitated to cede the islands, viewing them as a financial burden yet fearing the repercussions of U.S. racial policies for the islands’ majority-Black population (US Department of State Archive, 2009).

World War I reignited U.S. interest, driven by fears of German expansion. Using diplomatic pressure and threats of military action, the U.S. secured the islands for $25 million in gold, formalized on March 31, 1917 (National Museum of Denmark, 2024).

For Denmark, the decision was a way to avoid conflict, while for the U.S., the acquisition symbolized its growing imperial ambitions and strategic interests in the Caribbean (Britannica, 2024).

The local population, excluded from negotiations, faced a colonial legacy of limited rights. Though granted U.S. citizenship in 1932, their political representation remains restricted. The transfer marked a pivotal moment in U.S. expansionism, illustrating both its global power and the unresolved struggles of territorial inhabitants for equality and self-determination (United States Virgin Islands Advisory Committee to the U.S. Commission on Civil Rights, 2023).

Bellow, a simplified mathematical approach to converting the value of 25 million US dollars, which was used to purchase Saint Croix in 1917, to its equivalent value in 2025 is being provided.

This process involves several steps, accompanied by an explanation.

Value for money: Calculation of $25 million in gold coins (1917 to 2025)

Step 1: Gold-Backed Dollar in 1917

In 1917, the U.S. dollar was backed by gold at a fixed rate of $20.67 per troy ounce.

$1 equaled approximately: 1 ÷ 20.67 ≈ 0.04838 troy ounces of gold.

Source: U.S. Mint, (n.d.). Historical gold and silver prices. Available at: https://www.usmint.gov/learn/history/historical-gold-and-silver-prices

Step 2: Gold Represented by $25 Million

Total amount of gold represented by $25 million:

25,000,000 ÷ 20.67 ≈ 1,209,482 troy ounces of gold.

Source: U.S. Mint, (n.d.). Historical gold and silver prices. Available at: chttps://www.usmint.gov/learn/history/historical-gold-and-silver-prices

Step 3: Convert to Grams

1 troy ounce = 31.1035 grams, the total weight in grams is:

1,209,482 × 31.1035 ≈ 37,619,134 grams (or 37.62 metric tons).

Source: Gold Standard Institute, (n.d.). Understanding the gold standard. Available at: https://www.goldstandardinstitute.net

Step 4: Revalue the Gold in 2025

Assuming the price of gold in 2025 is $1,900 per troy ounce, the modern value of this gold is:

1,209,482 × 1,900 ≈ $2,298,016,449 USD.

Source: Kitco, (n.d.). Live gold prices. Available at: https://www.kitco.com/

Economic impact and reflections on identity 

The Virgin Islands’ culture and politics reflect the enduring influence of Danish colonial rule and U.S. governance. Danish-era architecture and traditions remain prominent, while Afro-Caribbean heritage continues to shape music, storytelling, and festivals like Emancipation Day (National Park Service, 2022). However, Virgin Islanders face limited political representation, unable to vote in presidential elections and lacking full congressional rights, which fuels ongoing debates about self-determination and status (United States Virgin Islands Advisory Committee to the U.S. Commission on Civil Rights, 2023).

Economically, the islands transitioned from agriculture under Denmark to tourism and later banking under U.S. control, leaving the economy vulnerable to external factors like global market shifts and climate change. This dependency, along with uneven infrastructure development, underscores the challenges of post-colonial growth. The Virgin Islands' economy is heavily reliant on tourism, trade, and various service-based activities, which collectively contribute to approximately 60% of the region's GDP and employ nearly half of the civilian workforce. Annually, the islands welcome close to 3 million visitors, the majority arriving via cruise ships. However, the area is prone to storm-related damage. Agriculture plays a minimal role in the economy, with the bulk of food being imported. Industry and government each represent about 20% of the GDP. Manufacturing activities include rum production, electronics, pharmaceuticals, and watch assembly. St. Croix was home to one of the largest oil refineries in the world, processing 350,000 barrels of crude oil daily before ceasing operations in February 2012 after 45 years of operation.

Federal funding, including grants amounting to $241.4 million in 2013, made up 19.7% of the territory’s total income. That year, the economy contracted due to a decline in exports following the cessation of refined oil production. Despite this, the economy maintains a degree of diversity. Looking ahead, tourism, rum exports, trade, and services are expected to remain key revenue sources (Moody’s Investor Service, 2025).

Virgin Islanders hold a dual identity as U.S. citizens and as a people with a rich Afro-Caribbean heritage. While their connection to American systems provides some benefits, it also highlights inequalities and cultural tensions, particularly amid the growing influence of American tourism and media. Despite these challenges, Virgin Islanders preserve their unique cultural identity and historical pride, using their complex legacy as both a reminder of past struggles and a foundation for pursuing greater autonomy and representation (Britannica, 2024).

Conclusion 

The history of Saint Croix reflects a tapestry of colonial ambitions, economic transitions, and cultural resilience. From its Indigenous Carib and Arawak origins to its strategic importance under European and American rule, the island has been at the crossroads of global power struggles and local adaptations. Each colonial era—from Spanish exploration to Danish plantation economies—left a distinctive mark on the island's cultural and economic identity. 

The pivotal U.S. acquisition of Saint Croix and the Virgin Islands in 1917 for $25 million in gold coin exemplifies the island's enduring strategic significance. This transaction, equivalent to approximately 1,209,482 troy ounces of gold in 1917, would hold a value of around $2.3 billion USD in 2025, considering an estimated gold price of $1,900 per troy ounce. This deal not only underscored U.S. concerns about protecting Caribbean trade routes and countering German naval ambitions during World War I but also highlighted Saint Croix’s role as a linchpin in global geopolitics.   

The island's Afro-Caribbean heritage, forged through centuries of resistance and adaptation, remains vibrant. Cultural practices such as storytelling, music, and festivals, rooted in both African and European traditions, exemplify the resilience of its people. However, modern challenges persist. Economically reliant on tourism and external funding, Saint Croix faces vulnerabilities to global market shifts and climate change.         

Ultimately, Saint Croix’s story is a microcosm of broader themes: colonial exploitation, cultural survival, and the continuing struggle for self-determination. It serves as a poignant reminder of how the intersection of global ambitions and local histories shapes the modern world.

Photo source: PxHere.com.

References

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