Meanwhile Mr. McDougall was chafing at the strange and humiliating situation in which he found himself. With his family and staff poorly housed at Pembina and the severe winter coming on, he could scarcely be blamed for irritation and discontent. December 1st was the day on which he expected his commission as Governor to come into effect, and wonder of wonders, he, a lawyer, a privy councillor, and an experienced statesman, went so far on this mere supposition as to issue a proclamation announcing his appointment as Governor. As a matter of fact, far away from communication with Ottawa, he was mistaken as to the transfer. On account of the rise of the rebellion this had not been made, and Mr. McDougall, in issuing a spurious proclamation, became a thing of contempt to the insurgents, an object of pity to the loyalists, and the laughing-stock of the whole world. His proclamation at the same time authorizing Colonel Dennis, the Canadian surveyor in Red River settlement, to raise a force to put down the rebellion, was simply a brutum fulmen, and was the cause to innocent, well-meaning men of trouble and loss. Colonel Dennis succeeded in raising a force of some four hundred men, and would not probably have failed had it not transpired that the two proclamations were illegal and that the levies were consequently unauthorized. Such a thing to be carried out by William McDougall and Colonel Dennis, men of experience and ability! Surely there could be no greater fiasco!
The Canadian people were now in a state of the greatest excitement, and the Canadian Government, aware of its blundering and stupidity, hastened to rectify its mistakes. Commissioners were sent to negotiate with the various parties in Red River settlement. These were Vicar-General Thibault, who had spent long years in the Roman Catholic Missions of the North-West, Colonel de Salaberry, a French Canadian, and Mr. Donald A. Smith, the chief officer of the Hudson's Bay Company, then at Montreal. On the last of these Commissioners, who had been clothed with very wide powers, lay the chief responsibility, as will be readily seen.
A number of Canadians—nearly fifty—had been assembled in the store of Dr. Schultz, at the village of Winnipeg, and, on the failure of Mr. McDougall's proclamation, were left in a very awkward condition. With arms in their hands, they were looked upon by Riel as dangerous, and with promises of freedom and of the intention of Riel to meet McDougall and settle the whole matter, they (December 7th) surrendered. Safely in the fort and in the prison outside the wall, the prisoners were kept by the truce-breaker, and the Metis contingent celebrated the victory by numerous potations of rum taken from the Hudson's Bay Company stores.
Riel now took a step forward in issuing a proclamation, which has generally been attributed to the crippled postmaster at Pembina, one of the dangerous foreign clique longing to seize the settlement. He also hoisted a new flag, with the fleur-de-lis worked upon it, thus giving evidence of his disloyalty and impudence. Other acts of injustice, such as seizing Company funds and interfering with personal liberty, were committed by him.
On December 27th—a memorable day—Mr. Donald A. Smith arrived. His commission and papers were left at Pembina, and he went directly to Fort Garry, where Riel received him. The interview, given in Mr. Smith's own words, was a remarkable one. Riel vainly sought to induce the Commissioner to recognize his government, and yet was afraid to show disrespect to so high and honoured an officer. For about two months Commissioner Smith lived at Fort Garry, in a part of the same building as Governor McTavish.
Mr. Smith says of this period, "The state of matters at this time was most unsatisfactory and truly humiliating. Upwards of fifty British subjects were held in close confinement as political prisoners; security for persons or property there was none.... The leaders of the French half-breeds had declared their determination to use every effort for the purpose of annexing the territory to the United States."
Mr. Smith acted with great wisdom and decision. His plan evidently was to have no formal breach with Riel but gradually to undermine him, and secure a combination by which he could be overthrown. Many of the influential men of the settlement called upon Mr. Smith, and the affairs of the country were discussed. Riel was restless and at times impertinent, but the Commissioner exercised his Scottish caution, and bided his time.
At this time a newspaper, called The New Nation, appeared as the organ of the provisional government. This paper openly advocated annexation to the United States, thus showing the really dangerous nature of the movement embodied in the rebellion.