Sitka is the fourth-largest city by population in Alaska. It was the site of the ceremony in 1867 when the Russian flag was lowered and the United States flag raised after the U.S. purchased Alaska for $7.2 million (about 1.9 cents per acre). After the transfer, the entire U.S. government presence in Alaska until the Klondike Gold Rush consisted of a single customs inspector on the island. Sitka served as the capital of the Alaska Territory until 1906, when the seat of government was relocated north to Juneau. Alaska became a state in 1959.