March 30, 1867. The Purchase of Alaska
The acquisition of Alaska by the United States is a classic example of European intrigue and expansionism offering opportunity for the Americans, safely distant from the guns of the crowned heads of Europe. The continent was boiling with nationalism and the growing influence of the Germans and the Italians. Russia wanted to dominate European affairs (a long-held goal) and reducing the British, whose strength came from its overseas empire was a strategic goal.
Of particular concern to the Russians was the British-held territory of British Columbia, situated between the United States and Russian-owned Alaska. It occurred to the Czar and his ministers that if the United States surrounded British Columbia by holding Alaska, British growth in the Pacific would be contained. Feelers to the Americans to sell Alaska were soon sent out by Russian emissaries.
The United States first had to resolve the issues of the Civil War and then became embroiled with the controversial Reconstruction of the American South. In order to distract attention from pressing and embarrassing political issues, President Andrew Johnson instructed his Secretary of State, William Seward, to complete the purchase. The eagerness of the Russians to sell is indicated by the purchase price, which came to roughly two cents per acre, (about thirty-two cents today) arrived at as negotiations were completed and the deal signed on March 30, 1867. Despite the myth of the deal’s unpopularity, derived from some opponents labeling it “Seward’s Folly” the majority of Americans favored the acquisition.
Some historians and economists continue to argue that the purchase of Alaska has failed to generate a profitable financial return. They point out that the cost of purchasing Alaska coupled with the ongoing costs of administering, policing, and governing the area exceeds the returns on investment.
Because of the harshness of the environment and its remote location, large amounts of money are required to exploit the rich resources of the territory. But if it wasn’t for Seward’s Folly, Alaskan King Crab could easily be as expensive as imported caviar, and wild salmon could be as rare as sturgeon. Not to mention the cost of buying Alaskan oil from the Russians.