Hongkong, Oct. 18, Formal announcement' that the Government of the Crown Colony is watching the situation but scontems lates no a tion at the moment was made by Sir William Peel, the Governor, in a statement to the Legislative Council this afternoon.
"As I believe there may be some uncertainty in the Colony as to what steps, if any, this Government pro-potes to take in view of the action of China with regard to silver, 1 wish to say that the Government is Keeping close watch on the situa-Hon, but as at present advised sees no reason to take any special action, the statement said.
It is known, however, that there ave—been conferences between Yeading bankers and Government officials, although there is no indica~ tion at! the moment of any action to protect the Cotdny's currency.
Sir Thomas Southern, the Colonial Secretary, stated that the Government is closely watching the situation and keeping track of all developments, but definitely declared that no action is yet contemplated.
'A leading banker said in an me terview that there Is no real danger to, Hongkong's currency in the action taken by China. He pointed out that the Hongkong monetary system Jemploys silver coins only in small The banker added that silver -had been flowing out of Shanghai because the Shanghai rate was at a discount against silver parity, but pointed out that a similar situation does nol exist with respect to the Hong-ong rate, the Hongkong dollar being almost up to parity.
"There i no quest needing protection, "a3, the Crown Colony's currency. cons largely of banknotes and these are always adequately becked by bul.
a reserves."—-United Pres,
Text read from the printed page and cleaned; old type leaves the occasional error.