"A continuance of this state of matters may lead to the formation of a
provisional government by the people themselves, and to annexation to
the United States, as have been threatened. With the opening up of the
St. Paul's route, there has been a large increase of the 'American'
element in the settlement; and in the enclosed copy of the 'Nor'
Wester' of the 22nd July, you will observe that the United States
Government is quietly recruiting for its army in British territory.
This matter, I trust, may be in the meantime brought to the notice of
the proper authorities pending further information upon my return to
Red River.
"The trust which the Board has placed in my hands, and the confidence
reposed in my ability to guide you in forming your plans for the
future, impose on me no little responsibility and anxiety. I must
relieve my shoulders of this weight by stating plainly my belief that
the opening up of the country by waggon road and telegraph, and by the
encouragement of settlement, must prove so far detrimental to the
current commercial business of the Company as to render it difficult,
if not impossible, to provide a fair dividend upon the portion of its
capital embarked in the trade. I do not, however, the less recognize
the necessity of opening up the country and its communications.
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