The Tulips of Destruction!

1. Or, how the Dutch departed from reason during the 1630’s. The Tulips of Destruction! Michael Coates (Michel) Elementary French – Level 2

2. What’s a Tulip? • Originally Bred in the Ottoman Empire • Generally Bulbous • Over 100 species2 • Grows in almost every country in the world. 1

3. What’s a Tulip? • Usually grown from bulbs • Susceptible to a Virus 1

4. Who done it? • Charles de l’Écluse • Worked at the Hortus Botanicus • Planted Tulips • Bulbs were continually stolen from his garden.

5. A Documented Sale • 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

6. Why did the price increase? • True Market Forces • The Mosaic Virus • Speculation

7. True Market Forces • Supply and Demand • Cultivation of Tulips • French Demand for bulbs encouraged investment

8. The Virus • Caused streaking on the flowers petals • Weakened the cultivation cycle of the flower • The Virus was unpredictable

9. How does speculation work?

10. When did everything go wrong? • The whole system relied upon the Mythical final customer • Demand began to taper off when the price began to reach extremes

11. The Aftermath • In February 1637, the market completely collapsed. • The investors who bought bulbs were unable to unload them onto customers

12. The Aftermath • When contracts started to be annulled the government step in. • Contracts were enforced up to 3.5% of the contract’s value

13. Also, there’s a boardgame.

14. I didn’t come up with this. 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