Taxational Impasse

Discussion in the Chamber upon the government's recently enacted grain tax (TIME, June 28) of $10 on each ton of wheat and $22 on each ton of flour proceeded last week with Gargantuan violence.

The Communist Deputies proceeded to clinch their protests by tearing out and smashing approximately half the furniture in the Chamber. The Cabinet, by no means perturbed by this hackneyed maneuver, quietly took steps to begin suit for damages against all parliamentary vandals.

The grain-tax affair grew serious when M. Walko, Hungarian Minister of Commerce, declared to news gatherers that Hungary would retaliate against the law by imposing a boycott or higher tariffs on Czechoslovakia's goods, which have heretofore been exchanged for Hungarian grain. He added curtly: "Of course all negotiations for a Hungarian-Czechoslovak commercial treaty have now been broken off."

Since the grain tax is allegedly requisite to balance the Czechoslovakian budget, a major impasse loomed.

Foreign Minister Benes, "premier diplomat of Europe" (TIME, June 28) continued at his post by request of President Masaryk, despite the demands of his party (Czech National Socialist) that he resign as a protest against the grain tax.