It is commonly thought that the failure of the 1867 treaty coupled with the German interest in the islands played a significant role in the treaty not being passed.
Denmark was told in 1915 by the United States that the wish to purchase the islands of the Danish West Indies. This time was different the United States was considerably more resolute. A number of factors contributed to the American tenacity in acquiring the islands from Denmark these were: Spain being expelled from the Caribbean, the advent of Gunboat Diplomacy, the Panama Canal, and the German interest in acquiring islands in the Caribbean. The United States made clear to the Danish that their choices were sell the islands to the U.S. or the islands would possibly be annexed by the U.S. under the Monroe Doctrine. Willocks in The Umbilical Cord, recalls this: Lansing retorted that if Germany attempted to purchase or take over the Danish West Indies, he would invoke the Monroe Doctrine and seize and annex the islands in order not to allow them falling into German hands. Lansing's words caused the Danish government to reconsider its decision; and in November of 1915, Egan reported that public sentiment in Denmark was rapidly changing. Denmark having incredible diplomatic talents and keen business sense opted to sell the islands to the United States for $25 million in gold, considerably more than the previous treaties combined.
The formal transfer took place on March 31, 1917. Some of the issues agreed upon by the Americans and Danes involved citizenship and property. The United States congress was to determine political status and civil rights. Residents on the islands could become U.S. citizens, or maintain their Danish citizenship. The Congress of the United States made provisions for a temporary government. This government would be under the responsibility of the Navy, with the acting governor an Admiral. This intern government would last longer that intended partially due to the events of World War I and unrest in the Caribbean and Latin America.
