In endeavouring to correctly estimate the present condition of Indian affairs in the Saskatchewan the efforts and influence of the various missionary bodies must not be overlooked. It has only been during the last twenty years that the Plain Tribes have been brought into contact with the individuals whom the contributions of European and Colonial communities have sent out on missions of religion and civilization. Many of these individuals have toiled with untiring energy and undaunted perseverance in the work to which they have devoted themselves, but it is unfortunately true that the jarring interests of different religious denominations have sometimes induced them to introduce into the field of Indian theology that polemical rancour which so unhappily distinguishes more civilized communities.

To fully understand the question of missionary enterprise, as bearing upon the Indian tribes of the Saskatchewan valley, I must glance for a moment at the peculiarities in the mental condition of the Indians which render extreme caution necessary in all inter course between him and the white man. It is most difficult to make the Indian comprehend the true nature of the foreigner with whom he is brought in contact, or rather, I should say, that having his own standard by which he measures truth and falsehood, misery and happiness, and all the accompaniments of life, it is almost impossible to induce him to look at the white man from any point of view but his own. From this point of view every thing is Indian. English, French, Canadians, and Americans are so many tribes inhabiting various parts of the world, whose land is bad, and who are not possessed of buffalo--for this last desideratum they (the strangers) send goods, missions, etc., to the Indians of the Plains. "Ah!" they say, "if it was not for our buffalo where would you be? You would starve, your bones would whiten the prairies." It is useless to tell them that such is not the case, they answer, "Where then does all the pemmican go to that you take away in your boats and in your carts?" With the Indian, seeing is believing, and his world is the visible one in which his wild life is cast. This being understood, the necessity for caution in communicating with the native will at once be apparent-yet such caution on the part of those who seek the Indians as missionaries is not always observed. Too frequently the language suitable for civilized society has been addressed to the red man. He is told of governments, and changes in the political world, successive religious systems are laid before him by their various advocates. To-day he is told to believe one religion, to-morrow to have faith in another. Is it any wonder that, applying his own simple tests to so much conflicting testimony, he becomes utterly confused, unsettled, and suspicious? To the white man, as a white man, the Indian has no dislike; on the contrary, he is pretty certain to receive him with kindness and friendship, provided always that the new-comer will adopt the native system, join the hunting-camp, and live on the plains; but to the white man as a settler, or hunter on his own account, the Crees and Blackfeet are in direct antagonism. Ownership in any particular portion of the soil by an individual is altogether foreign to men who, in the course of a single summer, roam over 500 miles of prairie. In another portion of this report I hope to refer again to the Indian question, when treating upon that clause in my instructions which relates exclusively to Indian matters. I have alluded here to missionary enterprise and to the Indian generally, as both subjects are very closely connected with the state of affairs in the Saskatchewan.

Next in importance to the native race is the half-breed element in the population which now claims our attention.

The persons composing this class are chiefly of French descent originally of no fixed habitation, they have, within the last few years, been induced by their clergy to form scattered settlements along the line of the North Saskatchewan. Many of them have emigrated from Red River, and others are either the discharged servants of the Hudson Bay Company or the relatives of persons still in the employment of the Company. In contradistinction to this latter class they bear the name of "free men" and if freedom from all restraint, general inaptitude for settled employment, and love for the pursuits of hunting be the characteristics of free men, then they are eminently entitled to the name they bear. With very few exceptions, they have preferred adopting the exciting but precarious means of living, the chase, to following the more certain` methods of agriculture. Almost the entire summer is spent by them upon the plains, where they carry on the pursuit of the buffalo in large and well organized bands, bringing the produce of their hunt to trade with the Hudson Bay Company.

In winter they generally reside at their settlements, going to the nearer plains in small parties and dragging the frozen buffalo meat for the supply of the Company's posts. This preference for the wild life of the prairies, by bringing them more in contact with their savage brethren, and by removing them from the means of acquiring knowledge and civilization, has tended in no small degree to throw them back in the social scale, and to make the establishment of a prosperous colony almost an impossibility--even starvation, that most potent inducement to toil, seems powerless to promote habits of industry and agriculture. During the winter season they frequently undergo periods of great privation, but, like he Indian, they refuse to credit the gradual extinction of the buffalo, and persist in still depending on that animal for their food. Were I to sum up the general character of the Saskatchewan half-breed population, I would say: They are gay, idle, dissipated, unreliable, and ungrateful, in a measure brave, hasty to form conclusions and quick to act upon them, possessing extra ordinary power-of endurance, and capable of undergoing immense fatigue, yet scarcely-ever to be depended on in critical moments, superstitious and ignorant, having a very deep-rooted distaste to any fixed employment, opposed to the Indian, yet widely separated from the white man--altogether a race presenting, I fear, a hopeless prospect to those who would attempt to frame, from such materials, a future nationality. In the appendix will be found a statement showing the population and extent of the half-breed settlements in the West. I will here merely remark that the principal settlements are to be found in the Upper Saskatchewan, in the vicinity of Edmonton House, at which post their trade is chiefly carried on.

Among the French half-breed population there exists the same political feeling which is to be found among their brethren in Manitoba, and the same sentiments which produced the outbreak of 1869-70 are undoubtedly existing in the small communities of the Saskatchewan. It is no easy matter to understand how the feeling of distrust towards Canada, and a certain hesitation to accept the Dominion Government, first entered into the mind of the half-breed, but undoubtedly such distrust and hesitation have made themselves apparent in the Upper Saskatchewan, as in Red River, though in a much less formidable degree; in fact, I may fairly close this notice of the half-breed population by observing that an exact counterpart of French political feeling in Manitoba may be found in the territory of the Saskatchewan, but kept in abeyance both by the isolation of the various settlements, as well as by a certain dread of Indian attack which presses equally upon all classes.

The next element of which I would speak is that composed of the white settler, European and American,` not being servants of the Hudson Bay Company. At the present time this class is numerically insignificant, and were it not that causes might at any moment arise which would rapidly develop it into consequence, it would not now claim more than a passing notice. These causes are to be found in the existence of gold throughout a large extent of the territory lying at the eastern base of the Rocky Mountains, and in the effect which the discovery of gold-fields would have in inducing a rapid movement of miners from the already over-worked fields of the Pacific States and British Columbia. For some years back indication of gold, in more or less quantities, have been found in almost every river running east from the mountains. On the Peace, Athabasca, McLeod, and Pembina Rivers, all of which drain their waters into the Arctic Ocean, as well as on the North Saskatchewan, Red Beer, and Bow Rivers, which shed to Lake Winnipeg, gold has been discovered. The obstacles which the miner has to contend with are, however, very great, and preclude any thing but the most partial examination of the country. The Blackfeet are especially hostile towards miners, and never hesitate to attack them, nor is the miner slow to retaliate; indeed he has been too frequently the aggressor, and the records of gold discovery are full of horrible atrocities committed upon the red man. It has only been in the neighbourhood of the forts of the Hudson Bay Company that continued washing for gold could be carried on. In the neighbourhood of Edmonton from three to twelve dollars of gold have frequently been "washed" in a single day by one man; but the miner is not satisfied with what he calls "dirt washing," and craves for the more exciting work in the dry diggings where, if the "strike" is good, the yield is sometimes enormous. The difficulty of procuring provisions or supplies of any kind has also prevented "prospecting" parties from examining the head-waters of the numerous streams which form the sources of the North and South Saskatchewan. It is not the high price of provisions that deters the miner from penetrating these regions, but the absolute impossibility of procuring any. Notwithstanding the many difficulties which I have enumerated, a very determined effort will in all probability be made, during the coming summer, to examine the head-waters of the North Branch of the Saskatchewan. A party of miners, four in number, crossed the mountains late in the autumn of 1870, and are now wintering between Edmonton and the Mountain House, having laid in large supplies for the coming season. These men speak with confidence of the existence of rich diggings in some portion of the country lying within the outer range of the mountains. From conversations which I have held with these men, as well as with others who have partly investigated the country, I am of opinion that there exists a very strong probability of the discovery of gold-fields in the Upper Saskatchewan at no distant period. Should this opinion be well founded, the effect which it will have upon the whole Western territory will be of the utmost consequence.

Despite the hostility of the Indians inhabiting the neighbourhood of such discoveries, or the plains or passes leading to them, a general influx of miners will take place into the Saskatchewan, and in their track will come the waggon or pack-horse of the merchant from the towns of Benton or Kootenais, or Helena. It is impossible to say what effect such an influx of strangers would have upon the plain Indians; but of one fact we may rest assured, namely, that should these tribes exhibit their usual spirit of robbery and murder they would quickly be exterminated by the miners.

Every where throughout the Pacific States and along the central territories of America, as well as in our own colony of British Columbia, a war of extermination has arisen, under such circum stances, between the miners and the savages, and there is good reason to suppose that similar results would follow contact with the proverbially hostile tribe of Blackfeet Indians.

Having in the foregoing remarks reviewed the various elements which compose the scanty but widely extended population of the Saskatchewan, outside the circle of the Hudson Bay Company, I have now to refer to that body, as far as it is connected with the present condition of affairs in the Saskatchewan.