Although widely held to be an Indian term for Europeans, the word may well be an invention of English-speaking writers of Indian tales.
1843  The dog of a pale face returned evil for good.
1922  The only shadow on the joy of it all was war, for the tribe of the great Tyee was at war with the Upper Coast Indians, those who lived north, near what is named by the Pale-face as the port of Prince Rupert.
1955  "Pale face," he said, "could you tell me what the big wigwam is for ?"