In 1867, Secretary of State William Seward orchestrated one of America's greatest land deals, purchasing Alaska from Russia for $7.2 million-about two cents per acre. Initially mocked as 'Seward's Folly,' this acquisition would prove invaluable, bringing vast natural resources and strategic advantages to the United States.
On March 30, 1867, the United States made one of the most significant land deals in its history-purchasing Alaska from Imperial Russia for $7.2 million, roughly two cents per acre. This transaction, now recognized as an extraordinary bargain, added nearly 600,000 square miles of territory to America and fundamentally altered the nation's geographic footprint. Yet at the time, many Americans ridiculed what they called "Seward's Folly," seeing little value in the distant, frozen land.
The story of how Alaska transitioned from Russian colony to American territory involves diplomatic maneuvering, strategic interests, and economic calculations that would ultimately reshape North America's geopolitical landscape. What began as a controversial purchase would eventually prove to be one of America's wisest investments.
Historical Background: Russia in North America
Russia's presence in North America dated back to the mid-18th century, when Russian fur traders and explorers established outposts along Alaska's coast. By 1784, the first permanent Russian settlement was established on Kodiak Island. The Russian-American Company, chartered in 1799, managed these territories as a commercial enterprise focused primarily on the lucrative fur trade.
By the mid-19th century, however, Russia's interest in its North American holdings had waned considerably. The fur trade had declined as sea otter populations were depleted. The Crimean War (1853-1856) had exposed Russia's military vulnerabilities and strained its finances. Additionally, Russian officials worried that Britain might seize Alaska in a future conflict, particularly given Britain's significant presence in Canada.
For Russia, Alaska had become an expensive, difficult-to-defend territory with diminishing returns. Tsar Alexander II and his advisors began considering the possibility of selling Alaska to the United States, which would both generate needed funds and place a growing American power between Russian Far Eastern territories and British Canada.
Key Figures in the Alaska Purchase
The Alaska Purchase was largely the vision of William H. Seward, the U.S. Secretary of State under Presidents Abraham Lincoln and Andrew Johnson. Seward was a dedicated expansionist who envisioned American territorial growth across North America and into the Pacific. He saw acquiring Alaska as a strategic move to expand American commerce and power.
On the Russian side, Edouard de Stoeckl, Russia's minister to the United States, served as the primary negotiator. He had the confidence of Tsar Alexander II and worked diligently to secure favorable terms for Russia while ensuring the sale would proceed.
Other key figures included:
- Baron Ferdinand von Wrangel, former governor of Russian America, who had advocated for selling the territory
- Charles Sumner, Chairman of the Senate Foreign Relations Committee, who became a crucial supporter of the purchase in Congress
- President Andrew Johnson, who supported Seward's initiative despite his own political difficulties during Reconstruction
Negotiations and Treaty Terms
Formal negotiations began in March 1867 and proceeded with remarkable speed. The Russians were motivated sellers, and Seward was an eager buyer. After several intense negotiating sessions in Washington, D.C., Seward and de Stoeckl reached an agreement on March 30, 1867.
The treaty's main provisions included:
- Payment of $7.2 million to Russia (approximately two cents per acre)
- Transfer of sovereignty over approximately 586,412 square miles of territory
- Recognition of property rights of Russians who chose to remain in Alaska
- Provision of American citizenship to Russians who remained (except for "uncivilized native tribes")
The treaty was signed at 4:00 a.m. on March 30, 1867, after an all-night negotiating session. Seward, eager to complete the deal, reportedly woke up the Russian minister in the middle of the night when he received authorization to increase the offer slightly. The Senate ratified the treaty on April 9, 1867, by a vote of 37 to 2, and President Johnson signed it on May 28, 1867.
Public Reaction: 'Seward's Folly' and Criticism
The purchase initially met with significant criticism and mockery from the American public and press. Critics derided the acquisition as "Seward's Folly," "Seward's Icebox," and "Johnson's Polar Bear Garden." Many Americans questioned the wisdom of spending millions on what they perceived as a frozen, worthless wasteland.
The New York Tribune asked: "What can we do with such a country? The natural products of the country would not pay for the expense of government." Other newspapers published satirical cartoons showing Americans bundled in furs and surrounded by polar bears.
Several factors contributed to this skepticism:
- Limited public knowledge about Alaska's resources and potential
- The territory's remote location and harsh climate
- Political opposition to President Johnson and his administration
- Concerns about the cost during the post-Civil War reconstruction period
Despite this criticism, Seward remained convinced of Alaska's value, predicting that future generations would recognize the purchase as a wise investment.
The Transfer Ceremony
The formal transfer of Alaska took place on October 18, 1867, in Sitka (then called New Archangel), the capital of Russian America. The ceremony was brief but significant, marking the official handover of the territory.
Russian and American soldiers formed around the flagpole at the governor's house. The Russian imperial flag was lowered, and the American flag was raised. Russian Commissioner Captain Alexis Pestchouroff declared: "By authority from His Majesty the Emperor of Russia, I transfer to the United States the territory of Alaska." American Commissioner General Lovell Rousseau accepted the territory on behalf of the United States.
Some accounts note that the Russian flag temporarily caught on the flagpole as it was being lowered, requiring a Russian soldier to climb the pole to free it-a moment that some viewed as symbolic of Russia's reluctance to fully part with the territory.
The day of the transfer, October 18, is now celebrated as Alaska Day, a legal holiday in the state.
Alaska's True Value Revealed
The true value of Alaska began to emerge in the decades following the purchase, dramatically vindicating Seward's vision. The territory's vast natural resources proved far more valuable than anyone had anticipated.
The Klondike Gold Rush of 1896-1899 brought thousands of prospectors to Alaska and neighboring Yukon Territory, generating tremendous interest in the region. Subsequent discoveries of copper, coal, and other minerals further enhanced Alaska's economic importance.
Perhaps most significantly, the discovery of oil at Prudhoe Bay in 1968 transformed Alaska's economy. The construction of the Trans-Alaska Pipeline System in the 1970s enabled the transportation of this oil to market, creating an economic boom.
Beyond natural resources, Alaska has proven valuable in other ways:
- Strategic military importance, particularly during World War II and the Cold War
- Expansion of American fishing and maritime industries
- Development of a robust tourism sector
- Scientific research opportunities in unique Arctic environments
In purely financial terms, Alaska has repaid its purchase price thousands of times over through tax revenues, resource extraction, and economic activity.
From Territory to Statehood
For nearly a century after its purchase, Alaska remained a U.S. territory with limited self-governance. The Organic Act of 1884 established Alaska as a civil and judicial district, providing the territory with its first formal American government structure.
Alaska's path to statehood was long and complex. World War II dramatically increased federal investment in Alaska as the territory's strategic importance became evident. The 1940s and 1950s saw growing momentum for statehood, with Alaskans arguing they deserved the full rights of American citizenship.
Key milestones included:
- 1912: Alaska becomes a U.S. territory with a limited legislature
- 1946: Alaskans vote in favor of statehood in a referendum
- 1955-1956: Constitutional Convention drafts a state constitution
- January 3, 1959: President Eisenhower signs the proclamation making Alaska the 49th state
Statehood gave Alaskans full representation in Congress and control over their land and resources, though the federal government retained ownership of approximately 60% of Alaska's land.
Legacy and Historical Impact
The Alaska Purchase stands as one of the most consequential territorial acquisitions in American history. It significantly expanded the nation's size, resources, and strategic position. The purchase represented the practical application of American expansionist ideologies and set precedents for future territorial acquisitions.
For Russia, the sale marked a strategic pivot toward Asia and away from North American commitments. It also provided funds at a critical time when the empire was undertaking major reforms following the Crimean War.
The purchase had profound impacts on Alaska's indigenous peoples, who were neither consulted about nor party to the treaty. Native Alaskans, including Tlingit, Haida, Aleut, Inupiat, Yupik, and other peoples, found themselves under new governance with little acknowledgment of their rights. Only with the Alaska Native Claims Settlement Act of 1971 did the U.S. government formally address some Native land claims.
Today, the Alaska Purchase is widely recognized as one of America's greatest deals-a visionary acquisition that transformed a seemingly remote territory into an integral, valuable part of the United States. What critics once mocked as "Seward's Folly" is now celebrated as "Seward's Wisdom," a testament to the secretary's far-sighted understanding of America's strategic interests.
Frequently Asked Questions About Alaska Purchase: How America Acquired 586,412 Square Miles for $7.2 Million
Why did Russia want to sell Alaska?
Russia wanted to sell Alaska for several reasons: the fur trade had declined significantly, making the colony less profitable; Russia feared losing Alaska to Britain in a future war after the Crimean War exposed military vulnerabilities; the territory was difficult and expensive to defend given its remote location; and Russia needed funds to finance domestic reforms and wanted to consolidate its focus on its Asian territories.
Why was the Alaska Purchase called 'Seward's Folly'?
The Alaska Purchase was mockingly called 'Seward's Folly' because many Americans thought Secretary of State William Seward had wasted $7.2 million on a remote, frozen wilderness with little apparent value. Critics in the press and public couldn't imagine how such a distant, seemingly barren territory could benefit the United States, especially during the financially challenging post-Civil War era.
How did Native Alaskans respond to the purchase?
Native Alaskans were not consulted about the purchase, and the treaty effectively ignored their sovereignty. Many tribes, including the Tlingit, initially resisted American authority. The treaty classified them as 'uncivilized tribes' not entitled to citizenship. Native land claims remained unresolved until the Alaska Native Claims Settlement Act of 1971, which granted 44 million acres and nearly $1 billion to Native groups.
When did Alaska become a state?
Alaska became the 49th state of the United States on January 3, 1959, when President Dwight D. Eisenhower signed the official proclamation. This came after nearly a century as a district and later a territory. The statehood movement gained momentum after World War II demonstrated Alaska's strategic importance, and Alaskans approved their state constitution in 1956.
How did the discovery of oil change Alaska?
The 1968 discovery of oil at Prudhoe Bay transformed Alaska's economy and importance. The construction of the 800-mile Trans-Alaska Pipeline System in the 1970s enabled oil transport from the North Slope to Valdez. Oil revenues allowed Alaska to abolish its income tax, establish the Permanent Fund Dividend that pays annual dividends to residents, and develop modern infrastructure. However, it also created environmental concerns and made the state's economy heavily dependent on oil prices.
What was Russia's presence in Alaska like before the sale?
Russia's presence in Alaska was primarily commercial and limited mostly to coastal areas. The Russian-American Company operated trading posts focused on the fur trade, especially sea otter pelts. Russian Orthodox missionaries converted many Natives to Christianity. At its peak, only about 800 Russians lived in Alaska, primarily in settlements like Sitka (New Archangel), Kodiak, and scattered trading posts, while exercising nominal control over thousands of Indigenous Alaskans.
