Tulips as capital investments? Blossoming and crash of the flower All exchange
began in 1593 when the Vienna student brought the collection of tulip bulbs to the Netherlands. Tulips wonderfully suited humid Dutch climate and oozy soils, and the hobby quickly extended.
Efficient Dutches began to part tulips for sale soon, and it turned out that put this very profitable - in the adjacent countries were fond of fine flowers too and willingly bought them.
Trade went so well that enterprising gardeners bought up tulip bulbs even in the neighboring Belgium, and worked cultivation of tulips in monastic gardens especially hard.
Gradually the prices of flowers began to be overstated artificially. If earlier the Dutch flower growers exchanged or sold bulbs at the responsible price, then since 1634 speculation began. Bulbs began to sell by means of pharmaceutical scales at auctions, reached that something was formed like stock market game. Soon even the flower exchange bulletin appeared. Such grades, as “ Admiral van Eyk “ and “ Admiral Lifken “ were recognized optimum for capital investments, but they were available only to rich. Bulb price “ Admiral Lifken “ reached 4400 guldens. “ Tulip fever “ captured all sectors of society. One farmer did not regret to give 38 acres of the earth and hundred beasts for the one and only bulb “ Semper Augustus “. People were content with less known grades more poorly.
Business reached hazardous stockjobbing soon: instead of bulbs of new grades began to issue receipts, these receipts resold at higher price to others, others - at higher price the following and so on. As a result of chains of resales of the price reached the improbable sizes. Situation lucky coincidences encouraged: someone really received rare grades which he then successfully sold for the inexpensive receipt. Game involved all new and new gawks and reached huge scales: at that time on hands of the inhabitants wishing to try the happiness more than 10 million such tulip receipts walked.
For trade in bulbs special rooms where sellers and buyers gathered were got and arranged about the prices, such tulip exchanges were filled by many thousands motley crowd. The tulip mania captured all sectors of society. In the book “ Take-off and falling of flora “ left in 1643, it is told that the tyulpanomaniya struck handicraftsmen and seamen, seamstresses and laundresses, peasants and messengers of peat, servants and servants, petty dealers and chimney sweeps, merchants and noblemen, and also dealers in clay pots and wooden boxes. Who had no cash - put jewelry, a dress, property, gave for pledge of the house, earth, herd if only to get desired bulbs and to resell them for higher price.
Except the special tulip exchanges in each Dutch city fever captured taverns, taverns and beer, and all fans to play cards or bones turned into desperate players in bulbs. The cities of Harlem and Leiden were appointed in several thousand guldens of an award for removal of tulips of the set color or a form.
In the period of this exchange agiotage of the price of rare grades of flower bulbs reached four thousand guldens (in the present prices of 30 000 dollars) apiece. In 1637 3 bulbs were sold for 16300 guldens, and houses built in the smart area at the channel in Amsterdam cost about 4500 guldens. The prices of tulips rose continuously, at the price of a bulb it was possible to buy two carts of wheat, four carts of hay, four fattened bulls, pigs as much fattened, dozen of adult sheep, four barrels of beer, two barrels of butter, 500 kilograms of cheese, a bed, a suit and a silver cup! would be difficult to believe In it if in archives there was no documentary confirmation of operations on the stock exchange. One of the cities put into circulation tulips in the total cost in 10 million guldens! All personal property and real estate OST - the Indsky company, the largest colonial monopoly of that time was estimated at the same sum at the exchange!
The course of tulips quickly went for increase and attracted more and more new buyers, striking with a tyulpanomaniya the general population. There were enough persons interested to grow rich much among handicraftsmen and seamen, peasants and servants, merchants and noblemen. All considered that there is nothing more simply, than to get several bulbs of a tulip, to put them in a pot and, having received in the first year of a lukovichka from them - the child, to sell them for big money as a new promising grade.
Did not do also without sad cases and misunderstanding. One sailor in a tavern took by sight an unnecessary bulb, put it in a pocket and left. Having noticed loss, the owner rushed for the visitor who stole it - and that already and cut a bulb, having been going to have breakfast... In vain the sailor assured that a bulb at all tasteless and he is ready to return it. The shopkeeper entailed unfortunate in police where it became clear that he uncivilizedly ate his most precious copy of a tulip! The seafarer who lagged behind life was sentenced to six-months imprisonment. I understand this, a modest dinner.
And suddenly, as unexpectedly as there was this fever, crash burst. It began with that, historians consider that some merchants began to do attempts to turn the tulips into gold. Commercial transactions began to take place not so smoothly as earlier. The offer logically exceeded demand, and crisis immediately captured the exchanges. Especially nasty it was necessary to those who speculated on credit: the prices of bulbs constantly fell, and they had debts and percent. Panic burst: nobody wanted to buy tulips, despite the big advertizing campaigns organized by professional dealers on whom they convincingly proved what high value these florets have...
At last the Dutch government in Gaarlem issued the law on April 27, 1637 under which any transactions on bulbs of tulips were recognized harmful, and any speculation in tulips was strictly punished. Tulips became again what they were - usual cultivated flowers for a look uslazhdeniye.
So ended this stockjobbing which does not have analogs in the history of floriculture on flowers. And the tulip became again what was and what has to be - a fine flower, decoration of gardens and boulevards. These flowers by right carry the title “ kings of " colors; in the Netherlands. Now here about three quarters of the tulips sold in the world are grown up.