Published By: Orna Ghosh

Alaska- The biggest land sale of all time

Alaska is known as the most precious treasures owned by the USA was initially a part of Russian territory. ON 30th March 1867, a treaty was signed which transferred Alaska to the territory of the USA. The land was sold for $7.2 million which was shocking to the citizens of both countries because the price paid for the land was much lower than expected.

In the early 19th century or say before the official transfer of power happened, Alaska was serving as a centre for international trade and marketing. The capital city was a hub for the merchants who used to trade Chinese fabrics, tea and other products to the southern states of America. The land was filled with gold and diamond mines and according to the people living there, selling this land was the biggest mistake.But what could be the reason behind the idea of the biggest land sale?

The main reasons behind this deal were-

In the early 18th century, Vitus Bering crossed the river from Russia to Alaska that opened up a bunch of opportunities for entrepreneurs and industrial hunters. But this invasion by Russia was not easily accepted by the natives of the land which lead to a warfare of 2 long years. This lead to the formation of the Russian-American Company (RAC) and the main aim behind the formation of this was to exploit the Alaskan resources. Alexander Baranov was the leader of this company who came into settlements with the native tribes which helped with the profit of the company. Later when the Russian Military took over the controlling power of RAC, the company went downhill very quickly. They came up with different strategies to raise the profits but the plans backfired which also affected the finance of the country.

Survival in this land was challenging. The Russians used to go through a lot of struggle to feed themselves as the climate in this place was not suitable for agriculture. Even the distance between Alaska and Moscow was a lot to cover which was why it became difficult to sustain the Russian outpost. Although a port for transporting food was set up in California they struggled farming in that region.

It was difficult to defend the state with such a huge area and little population from any external attacks. Russia then was not well equipped to protect the vulnerable state of Alaska. During the war of the 1850s, Alaska became a huge problem and selling it seemed to be a good idea.

According to a historian, if the Russian point of view was taken into consideration then, the deal made a lot of sense because they could strengthen their relationships with the USA. On the other hand, the United States of America successfully expanded to cover the whole continent from the Pacific to the Atlantic.