THE GERMAN OCTOPUS.

Taranaki Daily News, 22 January 1916, Page 8

THE GERMAN OCTOPUS.

"A BLOW AT ITS HEART." GRIP ON METAL TRADE BROKEN. The Prime Minister of the Commonwealth is convinced that the grip of Germany over- the Australian metal trade is broken , In a spirit, of optimism, Mr. Hughes a few days ago reviewed the work against the German "octopus," and sketched the prospedts for the future, Mr Hughes said: — "The year 1915 has seen great changes and developments in the base metal industry of Australia, When the year opened the position of the industry was critical. The great mining companies were tied up by long-dated contracts with Germans. Legal opinions differed as to the effect of war upon these contracts, but the view that they were merely suspended during the war, and that they would revive at its expiration, wa.' put forward with great force. In any case, the uncertainty of the position threatened absolutely to paralysa the industry. AH the old channels along which the metallic products of AustraV ia had found their way to market were closed. The prospects in finding fresh ones appeared, in the face of the German contracts, quite hopeless. Tims the outlook at the beginning of 1915 was gloomy in the extreme, and an industry which gave employment to many thousands of men, in which many millions of capital' were invested, and the annua' value of whose output was about £16,000,000. sremed on the point 1 of actual collapse. The closing year looks/ upon quite a different picture. The metal industry is flourishing. Its prospects for the future are bright. It lias not only. held its own during tha year, but materially improved its position. Every German contract has been annulled. The mining companies of Australia, around which the octupus tentacles of the great German metal combine were so tightly drawn at the beginning of the year, now all breathy freely. Every tentacle has been cut, ajid the severed ends completely destroyed If Germany ever gets a foothold in the metal industry of Australia Again it will lie because Australians voluntarily surrender themselves to the embraces of the beast. Not only is every German eontract annulled, but fresh channels have been opened lip, and markets found with Britain, the Allies and friendly neutr<>j3. And when war ceases Germany will have lost that control over the metal industry which has done so nnieh to enable her to wage war effectively and to bu :1 ;- im het industrial and commercial position. "The effect of the war against German control over British ant 1 Australian industry, which the Commonwealth Government has persistently and resolutely urged since its accession to office, | has been felt even in Britain. A blow I has been struck at the heart of the great Merton octopus. It is not contended that it has received a mortal wound, but it will certainly never be quite the same again. And it is not too much to say that the effects of the staggering blow to the' German control of industry will ultimately count for more than many barren victories in the field. Some details of the work actually done may he set forth. "Practically arrangements have been completed for the smelting and refining of all copper ores, matter and blister copper ■\vithin the Commonwealth Tlie Electrolytic Refining Company at Port Kembla has already increased its eloetro refining capacity, has decided to make still further additions at considerable outlay of capital, and is also establishing works for refining blister cop,)t'r Hematite of gold #r-' by the Welsh "fire" methods. • r*'i wallaroo and Moonta Company is also enlarging its works. As regards the copper manufacturing industry, such as copper and brass wire drawing, rolling and tube ms king, a company has been formed with a local directorate, to inaugurate this important work. Portion of the plant and apparatus has already been secured, and a few months hence the importation of copper wire, cable, etc., should be a thing of the past.. Notice has been given that permits for the export of lead bullion will only be granted for such a period as will allow the erection and installation of lead refineries. It is imperative on national grounds that all Australian lead ores and bullion should be smelted and refined locally. It is also pleasing to. record that the Associated Smelting Company at Port Pirie is materially adding to the capacity of the smelting and refining works, and further increasing its zinc distillery. Zinc ores and their treatment are still receiving careful study and attention. Several experiments are being conducted with the view of solving this important, question. It is readily admitted that with zinc treatment the problem ii much move difficult than with lead, but many technical men are not yet convinced 'tlmt it is impossible to establish the spelter industry in Australia. It is therefore hoped that of the several tests at •present in hand, one process, or a combination of processes will be of commercial utility. Should it be possible to treat only 40 to 50 per cent, of the Commonwealth r.inc ore production locally it will be of inestimable value, not only to the producing mines, but,-to many other industries depending on spelter as a raw material.

"With other metals some progress is being made. Works ,are being established in Sydney anil Melbourne for the smelting of antimonial ores for metal, and also for the manufacture of compounds of antimony for use in arts and manufactures.. One of the most startling developments is the oversea demand for Australian iron and steel. Who would have dreamed twelve months ago that eastern nations would be buyers of Iron and steel in Australia? What is even more astonishing, that inquiries should come from the United States, the lnrge-st iron and stesl producing nation in the world. Yet sueh are the ehanges. and it has become necessary to prohibit tho export of scrap iron and steel, in order to protect Commonwealth interests. With the local metallurgical developments there is a heen demand for fuels, coal and coke—the laker industry lms nivviously hcvct hid wch bright prosjjcot*, and the manufacture of coke should be, through the additional quantities of ores and metals to be treated locally, established on a sound and lasting hasis. "The Australian Me<lal K.whange is justifying ita existence; valuable work is being performed by the Melbourne and Svdney committees, and the future of this new institution is assured. Tito war cloud still hangs over the Empire, but we must not allow that fact to paralyse out effort*, "As wc have begun," said the Prim? Minister, In oAncluslon, "so we shall go on, profoundly convinced that victory on the land or on sea will be but a-- empty honor if it leaves Germany free to pursue that system of enslavement of the commercial and industrial world, which, by a thousand subtle and devious devices, she had achieved,"