POLITICAL CONTROL

Political control of the zinc resources of the world up to the outbreak of the war in 1914 seems to have had only a minor effect upon the industry. Economic factors made ineffective any control not international in scope. A very large percentage of the zinc ores of the world were transported from the country of production to another for treatment, in some cases even being re-exported, sometimes after calcination, for the purpose of utilizing the sulphur content in the production of acid. Tariffs were imposed by some countries, as, for example, by the United States, on certain classes of zinc ores. Such measures had some effect on production in Mexico and Canada. Russia had imposed heavy import duties which subsidized domestic production and stimulated exploration and development. The chief European countries importing and smelting zinc ores admitted them free of duty.

During the World War, however, political jurisdiction was largely invoked to restore control of national resources to citizens of the given country or its allies. This movement was particularly marked in the British Empire, wherein there now exists a joint political and commercial control. Alien interests have been eliminated by government action and the government retains a share in the control through interests in marketing organizations or through financial participation in treatment works. Canada has established a small bounty on zinc produced in Canada from domestic ores and given financial aid to attempts to establish domestic smelting and refining plants.

In the United States the Alien Property Custodian has been active in eliminating all alien enemy control. His appointees will control many important companies for several years. Such action as has been taken does not appear to have disturbed such centralization of control as had been effected.[138]

[138] See Chapter on Copper, [pages 232]-[235], for discussion of German interests in the American metal trade.