The United States formally took possession of Alaska from Russia on this day in 1867, after it shelled out just $7.2 million for the territory, coming out to under two cents an acre. The deal over the ginormous territory was struck by Secretary of State William Henry Seward, who was leading a charge to expand the boundaries of the U.S. With Alaska sprawling over more than 586,000 square miles, Seward certainly achieved his mission. But while the value of Alaska to the U.S. is pretty clear nowadays, at the time the transaction was roundly mocked as “Seward’s Folly.”
Long story short, Russia found Alaska to be less of a boon and more of a burden. The massively difficult terrain was hard to defend, and across an ocean from the rest of Russia, so they were happy to offload the land when the Americans came knocking. In 1899, gold was discovered in the territory, causing a rush of would-be miners to the area. Public opinion quickly flipped, and the deal struck between the two countries is still seen as an absolute bargain today.
You can read more about the purchase of Alaska at History.com.
