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…