Economic development in Alaska during the Gold Rush era was partially shaped by the Mining Act of 1874, which allowed only two groups of people to stake mining claims: 1) citizens and 2) immigrants of good standing, which typically meant 'white' immigrants. Alaska Natives, who were not considered U.S. citizens, were excluded. The consequences of the Mining Act of 1874 were enormous. Since mining was the primary source of wealth in the territory and Alaska Natives were barred from staking claims, Natives were prevented from the opportunity to accumulate wealth.
Natives throughout Alaska tried to establish their right to be treated as equals. In Circle City, Rampart, Crooked Creek, and other places, Alaska Natives staked and filed claims following established procedures only to have them taken by whites with the legal justification that Alaskan Natives were not U. S. citizens or immigrants of good standing. During the Klondike Gold Rush, the Chilkoot Tlingit, who had controlled access to the Chilkoot Pass trade route for centuries, tried to tax miners using the trail. The U. S. Army stepped in on the side of the miners, essentially stripping the Tlingit of their property rights.
Despite Alaskan Native pleas to the federal authorities, 'white' Alaska prevailed in setting the terms of the social and economic conditions and becoming the power brokers in the Territory. Wages were often discriminatory, with white workers getting paid more than Natives for the same job. White hiring preferences for business, government, and community jobs were standard practice. Natives were not allowed to testify in civil courts against whites, and Native children were barred from attending white schools. Society was segregated with "whites only" signs, and in some cases, entire communities were off-limits to Alaskan Natives.
Restaurant in Juneau advertising that there are no Alaskan Native employees, 1908
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