From 1725, when Russian Czar Peter the Great sent Vitus Bering to explore the Alaskan coast, Russia started to focus on the region. So it surprised no-one that into the C19th, Russian Alaska became a centre of international trade. Russian merchants were drawn to Alaska for the treasured walrus ivory and the valuable sea otter fur, acquired by trading with the region’s indigenous peoples. The Russian-American Company/RAC, Russia's first joint-stock company, was started by C18th Russian businessmen, risk-taking travellers and entrepreneurs.
Like the East India Co. and the Hudson Bay Co. in Canada, the RAC controlled all of Alaska’s mines and minerals and could independently enter into trade agreements with other countries. These privileges were granted by the Russian imperial government and in return, the government collected massive taxes from the company. Even the tsars and their family members were among the share-holders.
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The first governor of the Russian settlements in America had been a merchant called Alexander Baranov (1747–1819). He built schools and factories, taught the native people to plant potatoes, expanded the sea otter trade and built shipyards. Under the first governor, the Company brought in enormous revenues. When Baranov resigned in 1817, he was replaced by Navy Captain Ludwig von Hagemeister, who brought with him new employees and shareholders from military circles. The new masters set HUGE salaries for themselves.
The Russians bought fur from the local population for half price, so over the next 20 years, almost all the sea otters disappeared. When Alaska lost its most profitable trade, the locals staged uprisings that the Russians quickly quashed. Then the officers had to look for other sources of revenue – Chinese fabrics, ice, coal and tea in particular. And, it was suggested, people already knew about possible gold deposits in the area. These were products that the southern parts of the USA needed.
In the capital, Novo Arkhangelsk, Russians were doing well. Ships and factories were built, and coal was mined. But as the USA expanded westward in the early 1800s, Americans set themselves up in competition with Russian explorers and traders. Unfortunately for St Petersburg, Russia lacked the financial resources to support major settlements or a military presence along North America’s Pacific coast; permanent Russian settlers in Alaska rarely rose above 400.
Then the Crimean War broke out in October 1853, and Britain, France and Turkey went into an alliance against Russia. It became clear that Russia could neither supply nor defend Alaska, given that the sea routes were controlled by the allies’ ships. Defeat in the Crimean War in Feb 1856 further reduced Russian confidence in the north Pacific.. to the point where the Russians had a realistic fear that the British would totally block Alaska.
At the very time that tension between Russia and Britain grew, Russian relations with the American authorities were warming up. And since the idea of selling Alaska seemed to be mutually beneficial to both Russia and the USA, Russia offered to sell Alaska to the USA in 1859. Anything that would block Russia’s greatest rival in the Pacific, Great Britain! But the time was not right for the USA. The looming American Civil War (1861-5) delayed the sale.
Why didn’t Russia offer Alaska to the more sensible, neighbouring country, Canada? I can think of two reasons. Firstly there was no central government on the West side of Canada yet, even though four eastern provinces already confederated in 1867. Secondly Canada was part of the British Empire, Russia’s worst enemy at the time.
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It was only after the Civil War that Russia’s envoy in Washington, Baron Eduard de Stoeckl, could move ahead on behalf of the Tsar. Stoeckl got together with American Secretary of State William Seward in Washington. In March 1867, Seward formally agreed to a proposal to purchase the 1.5 million hectares of Russian property in Alaska for $7.2 million. The Senate approved the treaty of purchase and President Andrew Johnson signed the treaty in May. Alaska was formally transferred to the USA in Oct 1867. This $7.2 million deal, a ridiculously small sum, ended Russia’s presence in North America and ensured American access to the Pacific northern rim.
Like the East India Co. and the Hudson Bay Co. in Canada, the RAC controlled all of Alaska’s mines and minerals and could independently enter into trade agreements with other countries. These privileges were granted by the Russian imperial government and in return, the government collected massive taxes from the company. Even the tsars and their family members were among the share-holders.
Alaska: between Canada to the east and Russia to the west
The first governor of the Russian settlements in America had been a merchant called Alexander Baranov (1747–1819). He built schools and factories, taught the native people to plant potatoes, expanded the sea otter trade and built shipyards. Under the first governor, the Company brought in enormous revenues. When Baranov resigned in 1817, he was replaced by Navy Captain Ludwig von Hagemeister, who brought with him new employees and shareholders from military circles. The new masters set HUGE salaries for themselves.
The Russians bought fur from the local population for half price, so over the next 20 years, almost all the sea otters disappeared. When Alaska lost its most profitable trade, the locals staged uprisings that the Russians quickly quashed. Then the officers had to look for other sources of revenue – Chinese fabrics, ice, coal and tea in particular. And, it was suggested, people already knew about possible gold deposits in the area. These were products that the southern parts of the USA needed.
In the capital, Novo Arkhangelsk, Russians were doing well. Ships and factories were built, and coal was mined. But as the USA expanded westward in the early 1800s, Americans set themselves up in competition with Russian explorers and traders. Unfortunately for St Petersburg, Russia lacked the financial resources to support major settlements or a military presence along North America’s Pacific coast; permanent Russian settlers in Alaska rarely rose above 400.
Then the Crimean War broke out in October 1853, and Britain, France and Turkey went into an alliance against Russia. It became clear that Russia could neither supply nor defend Alaska, given that the sea routes were controlled by the allies’ ships. Defeat in the Crimean War in Feb 1856 further reduced Russian confidence in the north Pacific.. to the point where the Russians had a realistic fear that the British would totally block Alaska.
At the very time that tension between Russia and Britain grew, Russian relations with the American authorities were warming up. And since the idea of selling Alaska seemed to be mutually beneficial to both Russia and the USA, Russia offered to sell Alaska to the USA in 1859. Anything that would block Russia’s greatest rival in the Pacific, Great Britain! But the time was not right for the USA. The looming American Civil War (1861-5) delayed the sale.
Why didn’t Russia offer Alaska to the more sensible, neighbouring country, Canada? I can think of two reasons. Firstly there was no central government on the West side of Canada yet, even though four eastern provinces already confederated in 1867. Secondly Canada was part of the British Empire, Russia’s worst enemy at the time.
While the Russian and American officials were working on a deal, public opinion in both countries expressed opposition. The Russians asked how they could give away land that they had put so much effort and time into developing, the land where gold mines had been found. The Americans asked why they needed a frozen, useless land with 50,000 wild indigenous people. The American Congress may have also disapproved of the purchase.
Alaska Treaty of Cessation, 30th March 1867.
Signed by Secretary of State William Seward and Russian minister Eduard de Stoeckl
Signed by Secretary of State William Seward and Russian minister Eduard de Stoeckl
It was only after the Civil War that Russia’s envoy in Washington, Baron Eduard de Stoeckl, could move ahead on behalf of the Tsar. Stoeckl got together with American Secretary of State William Seward in Washington. In March 1867, Seward formally agreed to a proposal to purchase the 1.5 million hectares of Russian property in Alaska for $7.2 million. The Senate approved the treaty of purchase and President Andrew Johnson signed the treaty in May. Alaska was formally transferred to the USA in Oct 1867. This $7.2 million deal, a ridiculously small sum, ended Russia’s presence in North America and ensured American access to the Pacific northern rim.
The formal handover of the land took place in Novo Arkhangelsk. The American and Russian soldiers lined up next to the flagpole, the Russian flag went down and the canons fired. Afterward, the Americans started requisitioning the town’s buildings, and renamed the town as Sitka. The hundreds of Russians who decided not to take American citizenship had to flee on merchant ships.
For decades after its purchase, the USA paid little attention to Alaska; the area was governed under military, naval or Treasury rule. Seeking a way to impose American mining laws, the USA only constituted a civil government in 1884. The timing was perfect, given that a gold rush was exploding in Alaska. The Klondike Gold Rush started in 1896, bringing the USA hundreds of millions of dollars. Of course the Russians were devastated. Even the previously sceptical Americans were thrilled. William Seward had really only been vindicated when Alaska became the gateway to the Klondike gold fields!
I would argue that the Russians had made the correct decision back in 1867; Alaska had never been “stolen” by American soldiers or politicians. How often, in the light of subsequent events, do nations look back at earlier decisions with regret?
The sale of Alaska had clearly marked the end of Russian efforts to expand trade and settlements to the Pacific coast of North America; it was therefore an important step in the USA’s rise as a great power in the Asia-Pacific region. But that begs another question. How would relations between the world’s largest powers have developed, had Russia not sold Alaska in its time of military and financial difficulties?
Alaska became an American state in Jan 1959.
For decades after its purchase, the USA paid little attention to Alaska; the area was governed under military, naval or Treasury rule. Seeking a way to impose American mining laws, the USA only constituted a civil government in 1884. The timing was perfect, given that a gold rush was exploding in Alaska. The Klondike Gold Rush started in 1896, bringing the USA hundreds of millions of dollars. Of course the Russians were devastated. Even the previously sceptical Americans were thrilled. William Seward had really only been vindicated when Alaska became the gateway to the Klondike gold fields!
I would argue that the Russians had made the correct decision back in 1867; Alaska had never been “stolen” by American soldiers or politicians. How often, in the light of subsequent events, do nations look back at earlier decisions with regret?
The sale of Alaska had clearly marked the end of Russian efforts to expand trade and settlements to the Pacific coast of North America; it was therefore an important step in the USA’s rise as a great power in the Asia-Pacific region. But that begs another question. How would relations between the world’s largest powers have developed, had Russia not sold Alaska in its time of military and financial difficulties?
Alaska became an American state in Jan 1959.