DOMINION INDUSTRY

Evening Post, Volume CVI, Issue 30, 4 August 1923, Page 10

DOMINION INDUSTRY

VALUABLE MINERALS NOT

WORKED

MANUFACTURE OF WOOLLEN

GOODS

- NATIONAL STOCKTAKING

NECESSARY.

£The following is the fourth instalment of a sketch of the economic development of New Zealand industry by Df-T- J. Henderson.]

Although no workable deposit of the ordinary commercial metals-—copper, •zinc, lead, and tin—is known in New Zealand, other valuable mineral substances, that up to the present have either not been worked at all or have, been .worked to a small extent, occur. Tlfg deposits of asbestos and talc in the Mount Arthur district, Nelson, though 'difficult of access, are capable of supplying all New Zealand's requirements and; of furnishing valuable exportable commodities. During the last five years asbestos goods of .the average annual value, of £45,000 have been imported; and there is a much larger market in Australia, which also imports large amounts of asbestos. The volcanic districts of the North Island contain- deposits of sulphur, of what extent is at present unknown. Sulphur is used in tha^jnanufacture of sulphuric acid, the chief ~feagent of many chemical industries. In New Zealand it is made from imported sulphur, and , employed in the manufacture of superphosphate. The pumice. /sands and gravels derived from the_ Taupo-Rotorua district also have commercial value, and are beinjj more i and more used in modern industry. The amount sent to Australia should materially increase.

Deposits of mercury-ore occur in North 'Auckland, where for some years efforts,, more or less desultory, have been made to place the production of the metal on a commercial basis. The deposits are •large: enough to make this a reasonable expectation. Quicksilver is a metal produce'&'in quantity chiefly in Spain, Jugo-slavia;-Italy, and California. The total annual production is not large—about 4000 tons; and under existing conditions the "difficulty is not one of supply but of securing a remunerative, price for the output, which shows the lowest rate of increase of any of'the industrial metals. Quicksilver is chiefly used in gold-saving apd "gilding, industries that are unlikely to require increased supplies; so that unless some new chemical or industrial use for it is found it is likely to recede in value.

The blast furnace recently erected near-Parapara should be able to supply the bulk' of New Zealand's requirements of foundry iron, and, when an additional furnace is built, of open-hearth, steei." The furnace is favourably situated- .for cheap working, being close-to large "deposits of ore and limestone. The ore, which is a porous limonite, containing from 45 to 50 per cent, of iron, low in sulphur and phosphorus, can; be readily reduced, abtout' a ton of coke .being required per ton of pig iron produced. In order to demonstrate to likely ..customers the quality of the iron yielded: by the ore, smelting was carried on fpr'a'short time as soon as the furnace; was erected, but before coke-ovens or shipping accommodation had been provided. The iron produced was a soft higlFsilicon\iron suitable for foundry purposes. A battery of coke-ovens has since* been built, and will eliminate a considerable waste of fuel, since coke used'_;f<sr iron-smelting with each handling ;is estimated to\ depreciate at least 1 per cent. The coal will be obtained froniTithe West Coast; but about half the fuel charge will consist of relatively cheap gas-coke obtained from the larger centres."; _ Th"e.~establishment of the iron-smelting industry'is of great importance to New Zealand.: The cost of the iron and freight ;charges are saved to Nthe Dominion, -and at the same time local _coal-mining"-is stimulated and new subsidiary industries founded. : NEW ZEALAND COAL. The coal that leaves New Zealand is chiefly fuel for bunkering steamers engaged in the export trade, together with a small 1, amount of superior coal used by ;.th'§ Navy. But during most'years these are considerably exceeded by-the coal imported. The proved coal S of« New Zealand is sufficient for a generation, and the probable supplies mucb/jlarger in amount. The most valuable^fu'els, the bituminous coals of the West": Coast, are a luxury combining refinement* of quality with shortage of supply.^.At the present time more than half .the; coal mined is bituminous, which is used in many ways for which a lowergrade fuel is quite suitable. Thus it'is essential in gas and coke making, desirable for bunkering and locomotives, but could be replaced without inconvenience for use under stationary boilers and for domestic heating. There are thick extensive seams of pitch and brown coal on the West Coast that could furnish large supplies to the central portions of New Zealand, Canterbury, Wellington, and—Hawkes Bay, at * present using bituminous coal for all purposes. The largest single consumer of coal in New Zealand, the Eailway Department, uses about 300,000 tons of. high-grade fuel annually. Much of this coal is imported, whereby the Dominion's supplies are -.conserved; but these imports, which are a serious drain, could be avoided if pulverised coal were used. To convert the locomotives to dust-burners would, how- I ever, cost much money; but long-haul ago ! charges would be greatly reduced, since local low-grade fuels could be utilised, j

The petroleum / products annually imported in large amount are likely soon to increase in price. This will doubtless cause the known petroliferous areas in New Zealand to be thoroughly prospected. This work should be undertaken only, by a company with large capital reserves and guided by expert advice, since generally many dry wells have to be drilled before it can be proved whether payable oil-pools exist or not. Indications of petroleum are found over considerable areas- of New Zealand, but uj to the present little intelligently-di-rected prospecting has been done. The oil-shales of Orepuki' and, Waikaia, which also contain large supplies oi oil, will not yield.the profits of a successful oilfield v These are due substantially to the 'cheapness with which oil output can be developed as compared with tne expenses of opening up a mining" area. A well costs perhaps a tenth aslmuch as*a shaft of equal depth, and is put down much more quickly. When the- oil sand is reached further developments and working-costs are trifling, for in some cases the oil is lifted to the surface by gas pressure, and in the others has. merely to be pumped. There aye none of; the expenses, common to other mining enterprises, of breaking ore, timbering, and haulage. These factors . make successful oilfields very profitable,

.but they also tend to make them shortlived.

Oil produced from shale must also bear the cost of distillation before it reaches the stage at which petroleum enters the refinery. Obviously, until the value of oil materially increases, even the shales richest in oils are not likely to be treated profit-ably. ..But many shales yield by-products, ammonia, and waxes; and it is from these that the profits are made in Scotland. The Now Zealand shales are rich in these by-products. But the' exact nature of the shales and the mode of treatment that will yield the best results must be carefully determined, the extent of the deposits ascertained, the mining and extraction costs closely estimated, and the probable market considered before large capital is expended on a distillation plant. In the foregoing an attempt has been made to show that the progressive settlement of new lands, on which the prosperity of New Zealand during the last thirty years has chiefly depended, is not likely to continue; that the tendency to intensive as distinct from extensive farming is decided; and that the returns from the land per unit of work and capital employed are diminishing. Other resources of raw material that might be exported or might supplant imports were suggested whereby the trade balance could be maintained. But the same result would follow from the establishment of manufacturing industries. The tendency to manufacture is now marked, and received an'impetus from war shortages, which brought home to all the advantages of being self-sufficient as a country. The benefits accruing to Christchurch from cheap power in aiding the extension of old and the founding of new industries is manifest; and centres of population, equally with tho usually conservative farming communities, are anxious to be supplied with cheap hydro-electric energy. WATER POWER. Water power has certain obvious advantages over steam power; i% is inexhaustible—the streams will always be there, so that the future does not depend on a dwindling reserve; and, once the plant is installed, operating costs are very low per unit of energy produced. Common but fallacious deductions from these facts are that hydro-electee power will be cheaper per unit than that derived from coal, and that these .unit costs are likely to decrease as the jplant .grows larger and older. The high cost and unreliableness of coal-supplies during and immediately after the war predisposed many to accept these conclusions. But the capital cost of most hydroelectric schemes is high compared with that of a "coal-using plant producing equal energy. , Again, in some cases all the energy available from the necessary initial expenditure cannot at once be profitably used, so that high prices have to be charged or interest losses carried) forward, adding to the total coat of the scheme. Therefore careful scrutiny ia required not only in regard to tho amount and cost of the energy at.the point of generation, but also in regard to the distance of transmission and the amount of the immediate and possible future consumption. New Zealand seems to be peculiarly well situated in respect to the amount and availabitity of its water power, but if it is to be of use in industrial development the capital expenditure in harnessing and transmission must be low. Industry being concerned primarily with what is profitable, those localities and countries that, other things being; equal, can supply energy .most cheaply will become manufacturing centres. ■ ' Though power is generally the most important single factor in aiding or limiting industrial expansion, other factors are also important. Thus industry, whether concerned in manufacturing or in producing raw mateiials, cannot be increased faster than capital becomes available for investment. Cheap and.reliable transport between the manufacturing centre and the consumer is necessary even if only the home market is supplied. All industries require careful and prudent management. Some depend for • success chiefly on expert technical direction; others chiefly ony skilled labour. These, together with abundant and readily obtained raw material, constitute the principal bases of modern industrial progress. MANUFACTURING INDUSTRIES. Seeing that New Zealand's chief export is wool, it seems likely that the manufacture of woollen goods will greatly increase, and that with cheap power a large export trade will be attained. The present difficulty is the scarcity of skilled labouir; the mills already in operation could employ large numbers of operatives were they available. The supply may be increased either by the slow process of training local labour or by immigration. But highly-skilled artisans and factory operatives do not readily leave their homeland; even in times of economic stress such as now obtain in England it is the less competent or wholly unskilled who suffer most, and in consequence emigrate in greatest numbers. And this difficulty of obtaining skilled labour is real* and serious in establishing in any country a new' industry utilising a large amount of intricate machinery that must be tended by highly-skill-ed operatives. The manufacture of cotton goods is likely to be undertaken as soon as abundant supplies of raw cotton can be obtained from Australia or the tropical islands of the Pacific. This also .is an industry largely dependent on skilled labour, and will probably best succeed if controlled by experienced manufacturers, who, assured of cheap power and the local market, will supply the necessary capital-and labour. Another* industry of which the raw materials are now largely exported is tanning. In this, technical control is of greater importance than labour. With this industry will also develop t*"-e preparation of glue and gelatine^" ]': \iould absorb large. quantities of vegetable tanning materials that could' be supplied from lands unsuited fop" agriculture or grazing, and by usingl mineral tanning agents would encourage the chemical industry. The use of clay products has become so common and so-important that few people realise their value or their variety. Earthenware, vitrified goods of coarse type, refractory bricks and tiles, and gag retorts are already produced; but there is ample raw material and a good market for sanitary ware, vitrified tiles, and various stoneware articles. The manufacture of porccliun,. the highest grade_ of pottery, which requires great technical skill and careful selection of materials, need not be.■attempted.' New Zealand, which has all' the material necessary for glass-making, annually imports much glassware. Bottles could easily be made, and the better grade's of glass could be imported till the "industry was well established, the demand greater and a supply of suitable labour available. •

There is room for great expansion in the chemical industries—indeed, the general opinion of writers on 'economic subjects is that the cboiuical industries ■wili in the future occupy a relatively much more important position, than they jdo to-day. .The principal,raw materials used are sulphur, linie, salt, magnesia and potash. With the exception of the last, these are obtainabJn. arid prol'ililv obtainable in large (amount. Coal, which may also be required lor its hem'ing and reducing powers, forms the raw material of many chemical products. Electrical energy _ may be used for electrolytic dissociation as wall ac for ita heating and power value. In Norway the

bulk of the electrical energy produced is utilised in the chemical industries, chiefly in the fixation of atmospheric nitrogen and in the manufacture of calcium carbide.

FOUNDING ALLIED INDUSTRIES.

Few industries can be founded that do not in some way aid industries already established or induce the starting of others. Thus, if the manufacture of textiles expands, the increase of woolscouring will aid, among others, the soap and chemical industries, and at the same time make profitable the saving of woolgrease, which, when purified, 13 the valuable lanoline. The dyeing industry will also benefit, and, through the chemical industry, cause various raw mineral materials to be produced. The increased use of machinery in manufacture helps the engineering trade and those industries from which it. obtains raw materials. Modern manufacturing is so complex that the various producing units are largely interdependent, and one cannot be benefited or injured without affecting many otherß. The economic development of any country is a phase of social evolution It is- to some extent under human control, though physical factors, chiefly tho latenal resources of a country, 'influence the nature of the change and limit its amount. The object to be kept in view is to continue the increase of national wealth, to utilise with the utmost ultimate economy all the wealth-produc-mg elements, but at the same time to free the process • from all preventable misery. • Full information as to the conditions of production, of commerce, and ot transportation is indispensable Without precise knowledge of the requirements of industry and of the location and amount of raw materials a balanced adjustment of population with local resources, cannot be attained, and transport absorbs great amounts of wealth and energy. Thus .there i, need of a na tional stocktaking, not only i n regard to the soil, the principal source of wealth but also m regard to the mineral, forest' and power resources of the Dominion '

Onco -upon a time men believed that it was possible to relieve rheumatic or Kouty pal ns by rubbing embrocation into the skin over the affected parts Any medicine which will really relievg mu S tPn^r al?S]nC^ frOm these troubles ,must neutralise the excess uric acid Rheumo does. this. In thousands of cases it has given immediate relief from the most acute pain. A lares 4s 6d bottle of Rheumo contains one week's treatment Sold by all che^LtTtd stores. Barracloußh's Magic Nervine stops toothache. Is 6d everywhere" Progandra,cures corns quickly, la 6d.

BANISH FLU' WITH NAZOL. At the first symptoms of influenza go to bed, keep warm, and inhale Nazol the powerful germicide. Speedily kills all flu' germs. Take Nazol on sugar or inhale through handkerchief. Sprinkle on children's night-clothes. Bottle fits in vest pocket. 60 doses Is 6d. All chemists and stores.—Advt.