The United States of America is famous
for its collection of 50 states, and it’s not often questioned how or when
any of these territories even became part of the country. We know that there were
the original 13 colonies, but after that, a lot of people just tend to jump ahead
to when 13 became 50. But in doing this, we miss some interesting events in the
history of the United States - and Russia… Before Alaska became a state, it was a U.S.
territory. But, before it was a U.S. territory, it was actually under the Russian
crown. And it was the Russians who sold the largest state of today’s U.S. to the
Americans. So, how and why did this happen?... Back in the 17th century, a Russian explorer by
the name of Semyon Dezhnev attempted to discover whether Siberia was connected with or in close
proximity to North America. There are conflicting theories of what happened during this expedition,
but the Russian government heard nothing of his findings either way. Still hoping to answer
the question Dezhnev set out to resolve though, in the early 18th century, Tsar Peter the Great
opted to send out another expedition. This time, two men by the names of Vitus Bering and Alexei
Chirikov, each set sail for a joint exploration to find the northwestern coast of the North
American continent. By mid-July of 1741, both ships had found land and shortly turned
back toward Russia to inform the government of their findings. Chirikov and his crew
returned, but Bering’s ship was wrecked and he died from disease before his crew
managed to scrape together a new ship and make their way to Russia. With them, the
crewmembers brought high-quality sea otter pelts that they had obtained while on the
newfound land, which sparked great interest from Russian traders back home and birthed the
idea to go and settle the Alaskan territory… At first, Russian traders began by setting up
hunting and trading posts along the Aleutian Islands to help with the length and challenges
of continued trade runs to and from Russia. Over time, these posts grew into settlements. This
shift into a more colonial concept on the islands prompted mixed treatment of the native Alaskans,
and the determination of the Russian settlers to establish a fur-trading monopoly prompted the
exploitation of and frequent violent discord with the local people. Still, the Russians continued
to expand their business and land-related claims across Alaska - though mostly along the coasts
- throughout the latter half of the 1700s. As the 19th century came around, the
Russian-American Company was established after Nikolay Petrovich Rezanov obtained a monopoly on
fur trade from the Tsar. The goal of the company, agreed to by Rezanov and Tsar Paul I,
was to not only do business but also to expand the colonial efforts on behalf
of Russia. The company did just that, and even set up Fort Ross and Fort Elizabeth
in California and the Kingdom of Hawaii respectively. At first, everything seemed
to be going well for the Russian settlers, but that quickly changed before the
middle of the 1800s even rolled around… Firstly, the settlements were small and often
only numbered a few hundred Russians in total. In addition, the Russian capital was far from the
Alaskan lands and it was no easy task to go back and forth or maintain communication.
And to complicate matters even more, the Russian-American Company fell into a
period plagued with mismanagement and poor business practices. All of this together led
to a drastic decline in profit from the Alaskan territories and the Russians became reliant
on trade with the nearby Brits and Americans. Finally, the Crimean War was the
last straw for the Russians. With the Alaskan settlement already
crumbling and financially taxing, the sudden increase of expenses back home
doomed any prospects of revitalizing the Russian-American Company and its success. There
now had to be a new strategy in order to avoid a complete and wildly expensive embarrassment as
Russia tried to reel in its territorial claims… At this time, Russia was severely concerned with
what the British may be planning. With tensions exceeding normal levels between the global
powers as a consequence of the Crimean War, it didn’t take long for the Russians
to realize the precarious situation their Alaskan colony was in. The land was
extremely difficult to defend given its position so far from the Russian capital
and mainland, and the Brits were right across the border in Canada which gave them
a front door entry if they wished to take it. Given these negative relations and Russia’s
warmer ties to the Americans by this point, the thought of selling the land to the United
States began to seem like quite a good one. Believing that American possession of Alaska
could help offset British dominance in the region and prevent an increased threat to
Russia, Tsar Alexander II decided that it was time to discuss an offer - so that’s what the
Russian government did in the 1850s. The Russians eventually brought the offer to the Americans, but
with the American Civil War beginning to spark, Washington was much too preoccupied to
really give it any thought. Nonetheless, Russia was determined, and the
proposal had gained some support… Back in 1848, the American Secretary
of State Seward declared that “Our population is destined to roll resistless
waves to the ice barriers of the north, and to encounter oriental civilization on the
shores of the Pacific.” - which made it pretty clear where the U.S. stood on the idea of
further expansion. So, Russian officials continued to discuss the sale of Alaska with
American officials over the next few years. After the American Civil War came to a
close with the Union victory in 1865, the Russian offer could finally become an actual
priority and Secretary of State Seward jumped into negotiations with the Russians in the spring of
1867. After some back and forth about the fairest price for the sale, both sides finally agreed on
the stunningly low cost of $7.2 million for the entire territory. On March 30, 1867, the final
treaty was signed and Alaska became American… Ironically, the Russian and American presses
were not so enthusiastic about the exchange for some time. Russian newspapers criticized
the idea of selling off a colony that they had put so much effort into and gained so
much profit from, while the Americans argued quite the opposite - referring to Alaska as
nothing more than an “icebox”. Of course, the latter would soon realize how wrong their
preconceived notions were, but for the time being, the deal was mostly only championed by the
politicians involved. Some sources do, however, state that the native Alaskans were relieved
to be freed from the brutal Russian authority, but of course, this would not be ultimate freedom
given that it was just an exchange of power, even if the U.S. provided an
improvement of conditions. After the sale was made, at
the end of the 19th century, the Klondike Gold Rush triggered a sudden wave of
gold miners racing to the new Alaskan territory, and the so-called “icebox” was quickly turning
into a jackpot. American profits coming directly from Alaska were now skyrocketing, and this
was only the start of the discovery of natural resources within the soon-to-be state. Today,
Alaska’s yearly gross production generally rounds out at around $50 million, oil and other
resources remain abundant within its borders, and both sales and income taxes are unnecessary
in the state. Furthermore, its strategic location in terms of military defense is a huge bonus,
and it’s definitely a much safer position for the U.S. to be in as opposed to the prospect
of Alaska still being Russian territory today. So, with so many benefits for the Americans
and very little money made by the Russians in comparison, why did Russia sell Alaska to the
United States? The easiest answer is, actually, money. Maintaining such an overseas territory so
far from your capital and so close to your rivals is both risky and expensive. And while it did
work well at first, poor management and repetitive challenges in terms of the back and forth trips
between Russia and Alaska that were necessitated quickly collapsed the economic dominance of
the Russian-American Company. On top of that, the added expenses of the Crimean War happening
simultaneously made it a fool’s mission to keep pushing expansion in Russia or even retention
of the colony. It was time for Russia to leave - to avoid a possible military disaster
if the Brits were to attack the settlements, and to save the Russian finances while they could
still be salvaged. Additionally, allowing the U.S. to expand so close to British territory would help
to neutralize the threat toward Russia and would hopefully encourage more of the current friendly
ties between Russia and America. Given all of these factors and the eventual enthusiasm from the
American officials, it makes sense why Russia was not just willing but eager to sell, and why they
specifically picked America to be the purchaser. Although in hindsight, it may seem like it was a
poor idea or even a shady deal on the part of the Americans, it remains clear that for Russia, there
were a few valid reasons to sell as they did, and apparently, America just had a streak
of good luck when it comes to gold and oil…
