# Travel >> Destinations >> United States

Seward's Folly? The Alaska Purchase: $7.2 Million for 586,412 Square Miles

On October 18, 1867, the United States took formal possession of Russian America—586,412 sq mi (1.5M km²)—for $7.2 million (equivalent to ~$150M today, or ~2¢/acre). The deal, negotiated by Secretary of State William H. Seward, was mocked as "Seward's Folly," "Seward's Icebox," "Walrussia." History proved the critics wrong.

The Deal

Russia's Motivation: Defeat in Crimean War (1856); feared British seizure; sea otter depletion; hard to defend.
US Motivation: Manifest Destiny; Pacific presence; resources (furs, fish, timber, minerals); block British Canada.
Negotiators: Seward (US) + Edouard de Stoeckl (Russian minister).
Treaty Signed: March 30, 1867. Ratified by Senate 37–2 (April 9).
Transfer Ceremony: Sitka (New Archangel), Oct 18, 1867. Russian flag lowered, US raised.

What $7.2 Million Bought

Land: 586,412 sq mi (1/5 size of lower 48).
Coastline: 6,640 mi (more than rest of US combined).
Resources (eventually): Gold (Klondike 1896, Nome 1898), oil (Prudhoe Bay 1968 – 13B+ barrels), gas, fish (salmon, pollock, crab), timber, rare earths.
Strategic Value: WWII (Aleutians campaign), Cold War (DEW Line, missile defense), Arctic sovereignty.

Return on Investment

Federal Revenue (oil alone): >$180B since 1959.
Annual State Budget: ~$10B (oil-funded).
Permanent Fund: $75B+ (oil royalties invested); pays annual dividend to residents ($1,000–$3,200).

Indigenous Perspective

Tlingit, Haida, Tsimshian, Aleut, Yup'ik, Iñupiat, Athabaskan nations never ceded title. Russia sold land it didn't fully control. ANCSA (1971) settled claims: 44M acres + $962M to Native corporations. Ongoing sovereignty issues.