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During this time, the Russian colonies in Alaska were financially struggling because the fur trade suffered from overexploitation. Russia's expansion efforts were sidelined after it became deeply embroiled with the Crimean War in 1853. This conflict created a major financial strain for Russia, and it was forced to look for ways to raise revenue. Russia's colonies were not profitable, and they were costing it money.<ref>For more on the period right before the purchase of Alaska by the US, see: Farrow, L. A. (2016). <i>Seward’s folly: a new look at the Alaska Purchase</i>. Fairbanks, Alaska: University of Alaska Press.</ref>
====US Why did the United States PurchaseAlaska?====
[[File:528px-1860-russian-america.jpg|thumb|left|Figure 2. Map from 1860 showing Russian America.]]
Since the late 1700s trip by Captain James Cook, British interests in the western North American increased. This did prompt interest prompted concerns in the US over possible British interests in expansion into the region. US American fur traders, originally restricted in from trading in Alaska by the Russo-American Treaty of 1824, ignored this treaty and increasingly traded with Alaska after the 1820s. Native populations, particularly the Aleut, were decimated by the Russians through disease and war. Russian colonists continued to face stiff native resistance through the 1850s, with the . The Tlingits were never being conquered by Russia and threatening key Russia settlements.
Native populations, in fact, rebounded in the 1850s as Russian power declined. With As the Civil War overended, and the United States had a unique opportunity to take advantage of Russia's weakness. Russia still facing 's continued financial problems, set the stage was set in 1867 for the United States to purchase Alaskain 1867. While expansion north of Washington state had previously eluded the United States, William Seward still strongly believed in Manifest Destiny for the United States. The United States purchases purchased Alaska for US$7.2 million, about $132 million in 2020 US dollars (Figure 2), under Secretary of State Seward 's guidance.
Initially, many in the US Americans ridiculed the purchase, leading people to call the purchase Seward's folly. The first day the US gained power in Alaska was October 18, 1867, today known as Alaska Day. The importance of Alaska as a defensive possession was soon became evident in how it was governed, with . The US Army, US Department of the Treasury, and US Navy were tasked with governing under the government territory which was called the Department of Alaska until 1884. Sitka remained as the main settlement for the US during this time.
In 1884, the Department of Alaska changed to the District of Alaska as civilian rule was now extended across the state. The 1896 Yukon Gold Rush (or known as the Klondike Gold Rush), which was mostly in neighboring Yukon, Canada, benefited Alaska as more settlers moved inland and exploration of the interior hastened. Towns along the Alaska-Canada border became established. In 1899, gold was found near Nome, Alaska, prompting the construction of the Seward-Nome railway and the establishment of towns such as Fairbanks.
