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Lord Durham’s first problem, one which he had not anticipated, was of a most delicate and dangerous nature. The extreme measures of punishment adopted by the Family Compact, through the instrumentality of Sir George Arthur, aroused a popular clamour against the government of Upper Canada, while at the same time the bands of political exiles which hung about the border, in a state of desperation, were designing an invasion of the province. The border states were openly hostile to Britain and made no secret of aiding the rebels in their plans for overthrowing the government. The state governments abetted these hostile movements, while the federal government, desiring to profit by the popular wave of anglophobia, was at best indifferent. On the night of May 29, a band of marauding outlaws which, under the leadership of a desperado, Bill Johnson, infested the islands in the St Lawrence, set fire to a British steamer, the Sir Robert Peel, which had been caught in American waters. Shortly afterwards an American steamer, the Telegraph, was fired on by British sentries at Brockville. These events, occurring at a time when international relations were strained, brought the situation to a crisis. War between Britain and the United States promised disaster in Lower Canada and the possible loss of the colonies. The success of Durham’s mission demanded, above all else, international peace. Accordingly, Colonel Charles Grey, Lady Durham’s brother, was dispatched to Washington for the purpose of securing co-operation in maintaining peace on the international border. The success of Grey’s mission was complete, and within a short time the forces of the two nations were acting in concert in preserving order along the boundary. This was not the least difficult of Lord Durham’s tasks, and it is to the credit both of Durham and of Grey that the mission was attended with such signal success.

Lord Durham’s attention was now directed to the more immediate purposes of his mission. A commission was organized for the investigation of the management of the crown lands of the province, and placed under the nominal direction of Charles Buller, but in reality entrusted to Gibbon Wakefield. The necessity of providing for the hearing of trials in the Court of Appeal gave rise to an enlargement of the executive council. Accordingly, Chief Justice Sewell, Chief Justice Reid, Judge Panet, Judge Rolland and Judge Vallières de St Réal were added to the council.