Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Tulipomania The Great Dutch Tulip-Trading  Craze of 1634-37 <ul><li>Mike Dash </li></ul>
Alkmaar, 5 February 1637 <ul><li>To Alkmaar, in the North Quarter of Holland </li></ul><ul><li>To an auction of the estate...
Stranger from the east <ul><li>Wild tulips from the Celestial Mountains </li></ul><ul><ul><li>Natural barriers </li></ul><...
‘ Acceptable and beautiful’ <ul><li>The Ottomans </li></ul><ul><ul><li>A holy flower </li></ul></ul><ul><ul><li>Depicted i...
‘ Acceptable and beautiful’ <ul><li>‘ The Light of Paradise’ </li></ul><ul><li>‘ The Matchless Pearl’ </li></ul><ul><li>‘ ...
‘ Acceptable and beautiful’ <ul><li>‘ Curved as the form of the new moon, her color is well apportioned, clean, well-propo...
Clusius  <ul><li>From Turkey to Europe </li></ul><ul><li>Trade goods and gifts </li></ul><ul><li>Augsberg, 1559 </li></ul>...
Theft <ul><li>Travels to Vienna 1573 </li></ul><ul><li>Receives tulip seeds from imperial ambassador to the Ottoman court ...
Varieties <ul><li>The most diverse of all flowers known to Clusius </li></ul><ul><li>14 different species </li></ul><ul><l...
Varieties <ul><li>Rosen </li></ul><ul><ul><li>Most numerous </li></ul></ul><ul><ul><li>Crimson flakes or flames on a white...
Varieties <ul><li>Violetten </li></ul><ul><ul><li>Purple or lilac on white </li></ul></ul><ul><ul><li>Less common than  ro...
Varieties <ul><li>Bizarden </li></ul><ul><ul><li>Red on a yellow background </li></ul></ul><ul><ul><li>Least common and le...
Smoke and mirrors <ul><li>Coveted and collected by the wealthiest regents and merchants </li></ul><ul><ul><li>Netherlands ...
Smoke and mirrors <ul><li>Planted formally </li></ul><ul><li>So scarce and expensive, often one flower per bed </li></ul><...
Semper Augustus <ul><li>Chronicle of Nicholas Wassenaer </li></ul><ul><li>Only 12 examples known by 1624 </li></ul><ul><li...
Why tulips? <ul><li>New </li></ul><ul><li>Rare </li></ul><ul><ul><li>and slow to propagate </li></ul></ul><ul><li>Hardy an...
Florists <ul><li>By 1630, a small but well-established market for tulips </li></ul><ul><li>Connoisseurs and growers </li><...
 
Boom <ul><li>1633. A house in Hoorn sold for three rare tulips; a farm in Friesland for a parcel of bulbs </li></ul><ul><l...
Boom <ul><li>Admirael de Man </li></ul><ul><ul><li>From 15 guilders to 175 </li></ul></ul><ul><li>Root en Gheel van Leyden...
At the Sign of the Golden Grape <ul><li>To understand this means understanding the way the trade was conducted. </li></ul>...
At the Sign of the Golden Grape <ul><li>And increasingly unreal </li></ul><ul><ul><li>Florists did not value tulips for th...
At the Sign of the Golden Grape <ul><li>The futures trade </li></ul><ul><ul><li>10% deposit down, balance payable at lifti...
At the Sign of the Golden Grape <ul><li>Perhaps 3,000 or 4,000 traders involved across a dozen towns </li></ul><ul><li>Bri...
From the notarial records of Wouter de Jonge (1635)
Value for money <ul><li>A flower worth 3000 guilders could </li></ul><ul><li>be exchanged for… </li></ul>8 fat pigs & 4 fa...
Bust <ul><li>By winter of 1636-37 the market was fast reaching saturation </li></ul><ul><ul><li>Growing concern at the app...
Bust <ul><li>The crash came in Haarlem on the first Tuesday of February 1637 </li></ul><ul><li>1250 guilders asked for a b...
Condemnation <ul><li>Panic spread from Haarlem to Amsterdam and the other tulip towns </li></ul><ul><li>Trade all but ceas...
Condemnation <ul><li>An assembly of growers meets at Amsterdam </li></ul><ul><li>Compromise: purchases to 30 November to b...
 
Legal process <ul><li>Compromise fails; appeals to the States </li></ul><ul><li>The States refers the matter to the Court ...
The bubble burst <ul><li>Cases heard into 1639 </li></ul><ul><li>The painter Jan Van Goyen, pursued by his creditors, then...
Lessons not learned <ul><li>A mania for hyacinths in 1737 </li></ul><ul><li>In dahlias in France in 1838 </li></ul><ul><li...
Upcoming SlideShare
Loading in …5
×

Tulipomania office 04

1,211 views

Published on

Tulipomania in Microsoft Office 2004 (.pps) format

  • Be the first to comment

  • Be the first to like this

Tulipomania office 04

  1. 1. Tulipomania The Great Dutch Tulip-Trading Craze of 1634-37 <ul><li>Mike Dash </li></ul>
  2. 2. Alkmaar, 5 February 1637 <ul><li>To Alkmaar, in the North Quarter of Holland </li></ul><ul><li>To an auction of the estate of a tavern-keeper, Wouter Winkel, for the benefit of his seven children </li></ul><ul><li>Fierce bidding raised 90,000 guilders </li></ul><ul><li>The goods sold: flower bulbs </li></ul>
  3. 3. Stranger from the east <ul><li>Wild tulips from the Celestial Mountains </li></ul><ul><ul><li>Natural barriers </li></ul></ul><ul><ul><li>The unfinished article </li></ul></ul><ul><li>Symbols of spring, life and fertility </li></ul><ul><li>Brought west by Turkish nomads, c9th-10th </li></ul><ul><li>Venerated in Persia by 1050 </li></ul><ul><ul><li>‘ When a young man gives one to his mistress, he gives her to understand, by the general color of the flower, that he is on fire with her beauty; and by the black base of it, that his heart is burnt to a coal.’ </li></ul></ul><ul><ul><li>John Chardin </li></ul></ul>
  4. 4. ‘ Acceptable and beautiful’ <ul><li>The Ottomans </li></ul><ul><ul><li>A holy flower </li></ul></ul><ul><ul><li>Depicted in the Garden of Eden </li></ul></ul><ul><ul><li>One of five precious flowers </li></ul></ul><ul><ul><li>An imperial symbol </li></ul></ul><ul><ul><li>The Abode of Bliss </li></ul></ul><ul><ul><li>Paradise gardens and professional gardeners </li></ul></ul><ul><ul><li>Istanbul tulips </li></ul></ul><ul><ul><ul><li>1500 varieties </li></ul></ul></ul><ul><ul><li>A council of florists to sit in judgment on new cultivars </li></ul></ul>
  5. 5. ‘ Acceptable and beautiful’ <ul><li>‘ The Light of Paradise’ </li></ul><ul><li>‘ The Matchless Pearl’ </li></ul><ul><li>‘ Increaser of Pleasure’ </li></ul><ul><li>‘ Rose of the Dawn’ </li></ul><ul><li>‘ Diamond’s Envy’ </li></ul><ul><li>‘ Pomegranate Lance’ </li></ul><ul><li>‘ Delicate Coquette’ </li></ul>
  6. 6. ‘ Acceptable and beautiful’ <ul><li>‘ Curved as the form of the new moon, her color is well apportioned, clean, well-proportioned; almond in shape, needle-like, ornamented with pleasant rays, her inner leaves as a well, as they should be, her outer leaves a little open, as they should be, the white ornamented leaves are absolutely perfect. She is the chosen of the chosen.’ </li></ul><ul><li>Seyh Mehmed Lalezari, Acceptable and Beautiful </li></ul>
  7. 7. Clusius <ul><li>From Turkey to Europe </li></ul><ul><li>Trade goods and gifts </li></ul><ul><li>Augsberg, 1559 </li></ul><ul><ul><li>Antwerp 1562 </li></ul></ul><ul><ul><li>Vienna 1572 </li></ul></ul><ul><ul><li>Frankfurt 1593 </li></ul></ul><ul><ul><li>France 1598 </li></ul></ul><ul><li>Seen in Mechelen by Carolus Clusius, 1565 </li></ul>
  8. 8. Theft <ul><li>Travels to Vienna 1573 </li></ul><ul><li>Receives tulip seeds from imperial ambassador to the Ottoman court </li></ul><ul><li>To Leiden 1592 to establish a hortus academicus </li></ul><ul><li>Thefts from the garden in 1596, 1598 </li></ul><ul><li>‘And so the 17 provinces were amply stocked.’ </li></ul>
  9. 9. Varieties <ul><li>The most diverse of all flowers known to Clusius </li></ul><ul><li>14 different species </li></ul><ul><li>More than 30 varieties known by 1602 </li></ul><ul><li>Divided into three broad groups </li></ul>
  10. 10. Varieties <ul><li>Rosen </li></ul><ul><ul><li>Most numerous </li></ul></ul><ul><ul><li>Crimson flakes or flames on a white petal </li></ul></ul><ul><ul><li>The more delicate the red, the finer and more coveted the flower – from ‘rude’ all the way to ‘superbly fine’ </li></ul></ul><ul><ul><li>Existed in about 400 varieties by 1635 </li></ul></ul>
  11. 11. Varieties <ul><li>Violetten </li></ul><ul><ul><li>Purple or lilac on white </li></ul></ul><ul><ul><li>Less common than rosen tulips; about 70 varieties </li></ul></ul><ul><ul><li>Also existed as lacken - white on a lilac background </li></ul></ul>
  12. 12. Varieties <ul><li>Bizarden </li></ul><ul><ul><li>Red on a yellow background </li></ul></ul><ul><ul><li>Least common and least coveted of the three groups </li></ul></ul><ul><ul><li>About 24 varieties </li></ul></ul><ul><ul><li>Could also be purple or brown on yellow </li></ul></ul>
  13. 13. Smoke and mirrors <ul><li>Coveted and collected by the wealthiest regents and merchants </li></ul><ul><ul><li>Netherlands the world’s first developed economy </li></ul></ul><ul><ul><li>A fast-growing society of refugees </li></ul></ul><ul><ul><li>Rich trades, banking, the Amsterdam stock exchange… even a futures market </li></ul></ul><ul><ul><li>Yet a flat, drab country with a Calvinist aversion to displays of ostentation and wealth in clothing or personal possessions </li></ul></ul><ul><ul><li>Tulips one of God’s creations… fitted into fashion for country houses and the beautification of the countryside with gardens </li></ul></ul>
  14. 14. Smoke and mirrors <ul><li>Planted formally </li></ul><ul><li>So scarce and expensive, often one flower per bed </li></ul><ul><li>Optical illusions used to multiply the number of flowers on display </li></ul>
  15. 15. Semper Augustus <ul><li>Chronicle of Nicholas Wassenaer </li></ul><ul><li>Only 12 examples known by 1624 </li></ul><ul><li>Single owner </li></ul><ul><li>Offers of 2,000 to 3,000 guilders per bulb were summarily rejected </li></ul><ul><li>Valued at up to 12,000 guilders a bulb by 1636 </li></ul>
  16. 16. Why tulips? <ul><li>New </li></ul><ul><li>Rare </li></ul><ul><ul><li>and slow to propagate </li></ul></ul><ul><li>Hardy and suited to sandy soil </li></ul><ul><li>Process of breaking unpredictable, & weakens flower </li></ul><ul><li>More intensely colored & better defined than any other flower before or since </li></ul>
  17. 17. Florists <ul><li>By 1630, a small but well-established market for tulips </li></ul><ul><li>Connoisseurs and growers </li></ul><ul><li>Large sums paid for the rarest flowers </li></ul><ul><li>Easy money? </li></ul><ul><li>Dutch society and Dutch character </li></ul>
  18. 19. Boom <ul><li>1633. A house in Hoorn sold for three rare tulips; a farm in Friesland for a parcel of bulbs </li></ul><ul><li>Stories drew in new investors </li></ul><ul><ul><li>often artisans mortgaging the tools of their trades </li></ul></ul><ul><li>Bulbs still scarce; rapid acceleration in prices, and more varieties began to be traded </li></ul>
  19. 20. Boom <ul><li>Admirael de Man </li></ul><ul><ul><li>From 15 guilders to 175 </li></ul></ul><ul><li>Root en Gheel van Leyden </li></ul><ul><ul><li>From 45 guilders to 550 </li></ul></ul><ul><li>Generalissimo </li></ul><ul><ul><li>From 95 guilders to 900 </li></ul></ul><ul><li>• This acceleration continued through 1635 until, by the winter of 1636, some bulbs could double in value in little more than a week. </li></ul>
  20. 21. At the Sign of the Golden Grape <ul><li>To understand this means understanding the way the trade was conducted. </li></ul><ul><li>Not an elite trade - at the margins of Dutch economic life </li></ul><ul><li>Traders were artisans, trading in tavern ‘colleges’ </li></ul><ul><li>By auction, but with wijnkoopsgeld (wine money) </li></ul>
  21. 22. At the Sign of the Golden Grape <ul><li>And increasingly unreal </li></ul><ul><ul><li>Florists did not value tulips for their beauty </li></ul></ul><ul><ul><li>Had no intention of growing them themselves </li></ul></ul><ul><ul><li>So wanted to trade all year round, not as previously during the lifting season </li></ul></ul><ul><ul><li>In all parties’ interests to maximize volume and profit - so system of trade by weight evolved </li></ul></ul><ul><ul><li>And a futures market </li></ul></ul><ul><ul><li>Windhandel </li></ul></ul>
  22. 23. At the Sign of the Golden Grape <ul><li>The futures trade </li></ul><ul><ul><li>10% deposit down, balance payable at lifting time </li></ul></ul><ul><ul><li>Sell the promissory note - no risk </li></ul></ul><ul><ul><li>Take the example of goudas at 100 guilders a bulb… </li></ul></ul><ul><ul><li>A man with 50 guilders capital could buy 5 bulbs </li></ul></ul><ul><ul><li>If by lifting time price had doubled he was worth 1,000 guilders </li></ul></ul><ul><ul><li>But if they halved, he lost 200 guilders… </li></ul></ul>
  23. 24. At the Sign of the Golden Grape <ul><li>Perhaps 3,000 or 4,000 traders involved across a dozen towns </li></ul><ul><li>Bricklayers, farmers, woodcutters, coffee-grinders, glass-blowers, millers </li></ul><ul><li>Weavers mortgaged tools </li></ul><ul><li>Payment often in kind </li></ul><ul><li>And as prices rose steadily, tulip trading became a national obsession </li></ul>
  24. 25. From the notarial records of Wouter de Jonge (1635)
  25. 26. Value for money <ul><li>A flower worth 3000 guilders could </li></ul><ul><li>be exchanged for… </li></ul>8 fat pigs & 4 fat oxen 12 fat sheep 24 tons of wheat & 48 tons of rye 2 hogsheads of wine 4 barrels of beer 2 tons of butter & 1,000 pounds of cheese A silver drinking cup A pack of clothes A bed with mattress & bedding A ship
  26. 27. Bust <ul><li>By winter of 1636-37 the market was fast reaching saturation </li></ul><ul><ul><li>Growing concern at the approach of lifting time </li></ul></ul><ul><ul><li>Chaotic chains of ownership </li></ul></ul><ul><ul><li>Doubts about identification of bulbs </li></ul></ul><ul><ul><li>All bulbs, even gemeene goed for which there was no actual demand, in play </li></ul></ul><ul><ul><li>Prices had become so high few could now afford to enter market, limiting amounts of new capital </li></ul></ul>
  27. 28. Bust <ul><li>The crash came in Haarlem on the first Tuesday of February 1637 </li></ul><ul><li>1250 guilders asked for a basked of witte croonen or switsers </li></ul><ul><li>No bidders at 1250 guilders </li></ul><ul><li>No bidders at 1100 guilders </li></ul><ul><li>No bidders at 1000 guilders </li></ul><ul><li>Panic </li></ul><ul><li>And a simple impulse: sell </li></ul>
  28. 29. Condemnation <ul><li>Panic spread from Haarlem to Amsterdam and the other tulip towns </li></ul><ul><li>Trade all but ceased - prices now 5%, sometimes 1%, of their peak </li></ul><ul><li>A tulip worth 5,000 guilders sold for 50 </li></ul><ul><li>Leaving tangled chains of ownership and debt </li></ul><ul><li>Those worst off: the growers </li></ul>
  29. 30. Condemnation <ul><li>An assembly of growers meets at Amsterdam </li></ul><ul><li>Compromise: purchases to 30 November to be paid in full </li></ul><ul><li>Purchases thereafter settled with payment of 10% of agreed price </li></ul><ul><li>Disillusionment and condemnation - a flood of ribald and moralistic broadsides </li></ul>
  30. 32. Legal process <ul><li>Compromise fails; appeals to the States </li></ul><ul><li>The States refers the matter to the Court of Holland </li></ul><ul><li>The Court refers the matter to the towns </li></ul><ul><li>All disputes suspended pending a resolution </li></ul><ul><li>Few cases ever were resolved </li></ul><ul><li>In Haarlem, an arbitration committee of ‘friend-makers’ from January 1638 </li></ul>
  31. 33. The bubble burst <ul><li>Cases heard into 1639 </li></ul><ul><li>The painter Jan Van Goyen, pursued by his creditors, then his creditors’ heirs, dies in 1656 still owing 897 guilders from his involvement with the tulip trade </li></ul><ul><li>Market returns to equilibrium in 1640s with a few connoisseurs dealing direct with the remaining growers for the most superbly fine bulbs </li></ul><ul><li>A few large deals still made - Aert Huybertsz pays 850 guilders for a Manassier, summer 1637 </li></ul><ul><li>By 1643, prices average 1/6th of those of February 1637 </li></ul>
  32. 34. Lessons not learned <ul><li>A mania for hyacinths in 1737 </li></ul><ul><li>In dahlias in France in 1838 </li></ul><ul><li>In red spider lilies in China in 1985 </li></ul><ul><li>Dutch domination of the bulb trade continues </li></ul><ul><li>Istanbul tulips and the tulips of Golden Age Holland become extinct; mosaic virus identified and isolated </li></ul><ul><li>Today the oldest variety dates only to 1650s </li></ul>

×