Alaska Purchase: 1867 Acquisition for $7.2 Million (2¢/Acre)

On March 30, 1867, the United States purchased Alaska from the Russian Empire for $7.2 million—approximately 2 cents per acre ($4.74/km²). The treaty was negotiated by Secretary of State William H. Seward and Russian Minister Eduard de Stoeckl.

Key Details

• Territory: 586,412 sq mi (1.52 million km²) – 1/5 size of contiguous U.S.
• Price: $7,200,000 in gold
• Cost per acre: ~$0.02 (2¢)
• Ratification: Senate approved 37–2 (April 9, 1867)
• Transfer: October 18, 1867, at Sitka (formal ceremony)

Context & Reaction

• "Seward's Folly"/"Seward's Icebox": Critics mocked the purchase as useless frozen wilderness
• Russian motivation: Fear of British seizure, financial strain, declining fur trade
• U.S. motivation: Expansionism, resources, Pacific presence, "Manifest Destiny"

Long-Term Value

Far from a folly, Alaska proved immensely valuable:

• Gold rushes: 1880s–1900s (Klondike, Nome, Fairbanks)
• Oil: Prudhoe Bay (1968) – largest North American field; Trans-Alaska Pipeline
• Fisheries: World's most productive salmon, crab, pollock grounds
• Strategic: Cold War early warning, Arctic presence, military bases
• Statehood: January 3, 1959 (49th state)

Return on Investment

Annual resource revenue alone (oil, fish, minerals, tourism) exceeds the purchase price many times over. The 2¢/acre deal ranks among history's most advantageous territorial acquisitions.