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3.4.18.wavIn 1867, the Russian-American Company was nearing bankruptcy. It would need direct government aid to survive. By then, the Russians had gathered information on Alaska's known resources. Sea otter populations were near extinction. They had gone far up the Yukon River searching for new furs but faced a dwindling supply. They had failed in their attempt to hunt whales and mine coal. And they had not found enough gold to warrant significant mining development.
Besides the economic troubles, the colony faced other problems. Advisers to Tsar Alexander II concluded that Russian-America was impossible to defend. The Russian treasury could not afford to rescue the company or a war with the United States or Britain over Alaska. Russian-America relied on Natives for labor and foreign merchants for supplies. In Southeast Alaska, they were dependent on the Tlingit for food. And the Tlingit remained powerful and potentially hostile.
In St. Petersburg, the tsar and his advisers began to discuss how they might better supply and defend Russian-America. These discussions eventually led them to consider whether or not Russian-America was a liability. Several advisers pointed out that the fur resources of the Amur River basin in China were unexploited, and that area was easier to defend and cheaper to supply. In addition, money from the sale of Alaska could pay off Russia's large war debts. The tsar and his council decided that the best course of action was to sell Russian-America and concentrate on Asia.
Tsar Alexander II
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