Foreign Trade

By the 1780s, both British and American merchant ships were entering Alaska waters to trade with Natives and Russians. Over time, this trade would greatly expand, which was both a great liability and a benefit to the Russian colony.

British and American merchant ships were primarily focused in Southeast Alaska. There, British and American traders were prepared to offer the Tlingit substantially higher prices than Russians, which forced Russians to increase their prices correspondingly. Due to this competition, Russians paid Tlingits as much as ten times more for sea otter pelts than they paid Aleuts, who, under Russian control, did not have access to multiple buyers. 

British and American traders also sold these furs to China for less than the Russians had, correspondingly lowering the prices Russians received for furs from the Chinese. By breaking Russia's monopoly, American and British traders cut into Russian profits at both ends of the trade. Russians paid more to buy furs in Alaska and had to sell them for less in China.

Americans were also willing to trade guns, ammunition, and alcohol with the Tlingit, something the Russians refused to do. By the 1820s, most Tlingit warriors owned firearms, and they were noted for being excellent marksmen. Possessing firearms played a large part in the Tlingit's success in resisting further Russian advancement. 

The Russians did try to limit foreign trade. In 1821, Tsar Alexander I issued an order forbidding non-Russian ships from coming within 100 miles of Russian-occupied coasts. But for all the problems American and British traders caused, they also provided essential benefits to Russian-Americans. 

Even though it was prohibited to trade with foreign merchants, Baranov bought much of his supplies from them for years. On more than one occasion, American ships relieved severe food shortages at Sitka and Kodiak. After the 1821 order from the Tsar, the colony, now under navy governors, stopped purchasing supplies from foreigners. It was a financial disaster. It cost much more to supply the colony from Russia than to buy these supplies from American or British merchants. 

In time, the colony became more open to trade with British and American companies. In 1825, a treaty with America and Britain allowed them to trade in Alaska but prohibited trading alcohol and firearms with Alaska Natives. Enforcement of this ban was left to the United States and British authorities. In 1837, an agreement was made for British companies to supply Russian-America with food from farms in Oregon and British Columbia.

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