The Extensive Russian Holdings in Alaska and the 1867 Sale to America

In 1867, two significant events took place that shaped the future of North America. On July 1st, three provinces of British North America united in a confederation known as Canada. Simultaneously, the United States acquired Alaska from Russia, marking a crucial point in the territorial history of both nations. At that time, Canada was far from the newly acquired Alaskan territory, raising concerns among the Canadians about their security and future.

Expansion of Russian Territory in Alaska

Before the sale to the United States, Russia had significant holdings in Alaska, claiming approximately 586,000 square miles (roughly 1.5 million square kilometers) of territory. This vast area encompassed much of what is now the state of Alaska, as well as parts of modern-day British Columbia and the Yukon Territory in Canada. The Russians established numerous trading outposts and settlements, particularly in coastal areas, where the rich fishing grounds and furs provided economic opportunities.

The trading posts and settlements played a crucial role in the development of the region. Russian fur traders began their forays into Alaska as early as the late 18th century, leading to the establishment of the colony known as Russian America. By the mid-19th century, the colony had grown significantly, covering an area of over 1.5 million square kilometers. However, the strategic and financial challenges faced by Russia at the time made it unlikely that the colony would continue to serve Russia's interests indefinitely.

Financial and Strategic Considerations

By the mid-19th century, Russia was facing significant financial difficulties. The costs of maintaining the colony in Alaska, which provided little in terms of direct economic benefits, became increasingly burdensome. Moreover, the lack of strategic value posed by Alaska to Russia made it an attractive proposition to sell the territory. In 1867, the Russian Empire decided to sell the Alaskan territory to the United States for $7.2 million (roughly 2 cents per acre). This transaction, now known as the Alaska Purchase, remains one of the most significant land deals in American history.

The Alaska Purchase not only provided the United States with a vast territory but also strategically positioned the US as a dominant power in the Pacific region. Over time, the area's mineral wealth, particularly gold and oil, became increasingly important. The discovery of gold sparked a gold rush in the late 1890s, while the discovery of oil in the early 20th century led to the construction of pipelines and a steady flow of oil to coastal ports. Much of this oil is still sold exclusively to Japan, further cementing Alaska's significance in the global market.

Conclusion

The extensive Russian holdings in Alaska and the subsequent sale in 1867 to the United States were shaped by a combination of financial exigencies and strategic considerations. The sale of Alaska not only provided Russia with the much-needed cash, but it also paved the way for the United States to establish a strong presence in the Pacific region. Today, Alaska stands as a testament to this pivotal historical transaction, a place that is both economically and culturally significant.