Back in 1867, Alaska was anything but a prized possession. In fact, it wasn’t even part of the United States at that point. It was still owned by Russia, which saw the frozen land as practically useless. But things were about to change in a big way. Little did anyone know that Alaska would eventually become a goldmine—literally and figuratively.
The US and Russia were both in a bit of a tricky spot. Russia, fearing its greatest rival, Great Britain, might gain control of Alaska, wanted to offload the territory. The US, fresh from the Civil War, wasn’t exactly thinking about Alaska’s potential. But then, in 1867, Secretary of State William Seward decided to step up and negotiate the deal of the century. The Russian Minister, Edouard de Stoeckl, agreed to sell the land for $7.2 million, which, when you break it down, comes to about 1.7 cents per acre. Just to put that into perspective, Alaska is twice the size of Texas and three times the size of California.
On March 30, 1867, Seward and de Stoeckl inked the deal, and the U.S. Senate approved it just a few days later. By May 28, the purchase was officially signed by President Andrew Johnson, and by October 18, 1867, the US flag was hoisted in Sitka, replacing the Russian one. But the deal wasn’t exactly met with cheers. In fact, many critics dubbed the purchase “Seward’s Folly,” believing it was a huge waste of money for land that seemed worthless.
For the next few decades, the US didn’t pay much attention to its new territory. Alaska was mostly governed by military or naval rule, and it wasn’t until 1884 that the US established a civil government. But then, in 1896, everything changed. Gold was discovered in the Yukon, and Alaska quickly became the gateway to the Klondike Gold Rush. People were flocking to the region in droves, and suddenly, Seward’s purchase didn’t seem so foolish.
The true strategic importance of Alaska wasn’t realized until World War II, when its location proved critical. Eventually, on January 3, 1959, Alaska officially became the 49th state of the US.
Today, it’s hard to imagine America without Alaska, but back in 1867, it was just another piece of land in a frozen wasteland. Thanks to Seward’s vision, though, the US gained one of its most valuable and resource-rich states, turning a “folly” into a massive win.
