Or, how the Dutch departed from reason during the 1630’s. Michael Coates (Michel) Elementary French – Level 2
Originally Bred in the Ottoman Empire Generally Bulbous Over 100 species 2 Grows in almost every country in the world. 1
Usually grown from bulbs Susceptible to a Virus 1
Charles de l’Écluse Worked at the Hortus Botanicus Planted Tulips Bulbs were continually stolen from his garden.
4.8 tons of Wheat 9.6 tons of Rye 4 “Fat” Oxen 8 “Fat” Swine 12 “Fat” Sheep 126 gallons of Wine 464 gallons of Beer 2 tons of butter 1000 pounds of cheese “A complete bed” A suit of clothes A silver drinking cup 2500ƒƒ
True Market Forces The Mosaic Virus Speculation
Supply and Demand Cultivation of Tulips French Demand for bulbs encouraged investment
Caused streaking on the flowers petals Weakened the cultivation cycle of the flower The Virus was unpredictable
The whole system relied upon the Mythical final customer Demand began to taper off when the price began to reach extremes
In February 1637, the market completely collapsed. The investors who bought bulbs were unable to unload them onto customers
When contracts started to be annulled the government step in. Contracts were enforced up to 3.5% of the contract’s value
1 Nusteling, H. (1985) Welvaart en Werkgelegenheid in Amsterdam 1540–1860, pp. 114, 252, 254, "WCSP". World Checklist of Selected Plant Families. "WCSP" Mackay, Charles (1841), Memoirs of Extraordinary Popular Delusions and the Madness of Crowds, London