U.S. Takes Formal Possession Of The Danish West Indies
On March 31, 1917, the U.S. took formal possession of the Danish West Indies.
Renamed the Virgin Islands, this chain consists of St. Thomas, St. Croix, St. John and about fifty other small islands, most of which are uninhabited. Lying about sixty-five kilometers east of Puerto Rico at the end of the Greater Antilles, the U.S. purchased the islands from Denmark for $25 million because of their strategic location in relation to the Panama Canal.
One such case involved the smuggling of arms and supplies to the "patriot" side during the American Revolution. This action led to an exchange of salutes — a traditional courtesy — between a merchantman flying the Grand Union flag and Fort Frederik at the west end of St. Croix. This action, albeit unofficial, constituted the first acknowledgment of the American flag from foreign soil.”— From Fort Christiansvaern, by Jerome A. Greene and William G. Cissel
Today In History: Virgin Islands
Wikipedia: Virgin Islands