Or, how the Dutch departed from reason during the 1630’s. Michael Coates (Michel) Elementary...

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 species2

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 TulipsBulbs 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

2500ƒ

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, 258.

2 "WCSP". World Checklist of Selected Plant Families. Mackay, Charles (1841), Memoirs of Extraordinary Popular Delusions and the Madness of

Crowds, London