GUEST on 31 Aug 12 - 08:08 AM had it almost right. I remember it clearly from Singing Together, about 1953. The Alzheimers hasn't fully set in yet. I was singing it and chose to Google it.

That's George that I hear
He swings the big hammer
The clang and the clamour
Keep time with his swinging
As bells were a-ringing
Through alley and square

There in the black forge
He stands by the stithy
As I pass the smithy
The bellows they roar out
The flames flash and pour out
And flicker round George

The first syllables of alley and flicker are spread over three notes in the song.