These flowers, which are of no further use than to ornament gardens, which are exceeded in beauty by many other plants, and whose duration is short and very precarious, became, in the middle of the 17th century, the object of a trade such as is not to be met with in the history of commerce, and by which their price rose above that of the most precious metals. An account of this trade has been given by many authors; but by all late ones it has been misrepresented. People laugh at the Tulipomania49, because they believe that the beauty and rarity of the flowers induced florists to give such extravagant prices: they imagine that the tulips were purchased so excessively dear in order to ornament gardens; but this supposition is false, as I shall show hereafter.
This trade was not carried on throughout all Europe, but in some cities of the Netherlands, particularly Amsterdam, Haarlem, Utrecht, Alkmaar, Leyden, Rotterdam, Hoorn, Enkhuysen, and Meedenblick; and rose to the greatest height in the years 1634–3750. Munting has given, from some of the books kept during that trade, a few of the prices then paid, of which I shall present the reader with the following. For a root of that species called the Viceroy the after-mentioned articles, valued as below expressed, were agreed to be delivered: —
These tulips afterwards were sold according to the weight of the roots. Four hundred perits51 of Admiral Leifken cost 4400 florins; 446 ditto of Admiral Von der Eyk, 1620 florins; 106 perits Schilder cost 1615 florins; 200 ditto Semper Augustus, 5500 florins; 410 ditto Viceroy, 3000 florins, &c. The species Semper Augustus has been often sold for 2000 florins; and it once happened that there were only two roots of it to be had, the one at Amsterdam and the other at Haarlem. For a root of this species, one agreed to give 4600 florins, together with a new carriage, two gray horses, and a complete harness. Another agreed to give for a root twelve acres of land; for those who had not ready money, promised their moveable and immoveable goods, houses and lands, cattle and clothes. A man whose name Munting once knew, but could not recollect, won by this trade more than 60,000 florins in the course of four months. It was followed not only by mercantile people, but also by the first noblemen, citizens of every description, mechanics, seamen, farmers, turf-diggers, chimney-sweeps, footmen, maid-servants and old clothes-women, &c. At first, every one won and no one lost. Some of the poorest people gained in a few months houses, coaches and horses, and figured away like the first characters in the land. In every town some tavern was selected which served as a ’Change, where high and low traded in flowers, and confirmed their bargains with the most sumptuous entertainments. They formed laws for themselves, and had their notaries and clerks.
When the nature of this trade is considered, it will readily be perceived, that to get possession of these flowers was not the real object of it, though many have represented it in that light. The price of tulips rose always higher from the year 1634 to the year 1637; but had the object of the purchaser been to get possession of the flowers, the price in such a length of time must have fallen instead of risen. “Raise the prices of the productions of agriculture, when you wish to reduce them,” says Young; and in this he is undoubtedly right, for a great consumption causes a greater reproduction. This has been sufficiently proved by the price of asparagus at Göttingen. As it was much sought after, and large prices paid for it, more of it was planted, and the price has fallen. In like manner plantations of tulips would have in a short time been formed in Holland, and florists would have been able to purchase flowers at a much lower price. But this was not done; and the chimney-sweeper, who threw aside his besom, did not become a gardener, though he was a dealer in flowers. Roots would have been imported from distant countries, as asparagus was from Hanover and Brunswick to Göttingen; the high price would have induced people to go to Constantinople to purchase roots, as the Europeans travel to Golconda and Visapour to procure precious stones; but the dealers in tulips confined themselves to their own country, without thinking of long journeys. I will allow that a flower might have become scarce, and consequently dearer; but it would have been impossible for the price to rise to a great height, and continue so for a year. How ridiculous would it have been to purchase useless roots with their weight of gold, if the possession of the flower had been the only object! Great is the folly of mankind; but they are not fools without a cause, as they would have been under such circumstances.
During the time of the Tulipomania, a speculator often offered and paid large sums for a root which he never received, and never wished to receive. Another sold roots which he never possessed or delivered. Oft did a nobleman purchase of a chimney-sweep tulips to the amount of 2000 florins, and sell them at the same time to a farmer; and neither the nobleman, chimney-sweep or farmer had roots in their possession, or wished to possess them. Before the tulip season was over, more roots were sold and purchased, bespoke and promised to be delivered, than in all probability were to be found in the gardens of Holland; and when Semper Augustus was not to be had, which happened twice, no species perhaps was oftener purchased and sold. In the space of three years, as Munting tells us, more than ten millions were expended in this trade in only one town of Holland.
To understand this gambling traffic, it may be necessary to make the following supposition. A nobleman bespoke of a merchant a tulip-root, to be delivered in six months, at the price of 1000 florins. During these six months the price of that species of tulip must have risen or fallen, or remained as it was. We shall suppose that at the expiration of that time the price was 1500 florins; in that case the nobleman did not wish to have the tulip, and the merchant paid him 500 florins, which the latter lost and the former won. If the price was fallen when the six months were expired, so that a root could be purchased for 800 florins, the nobleman then paid to the merchant 200 florins, which he received as so much gain; but if the price continued the same, that is 1000 florins, neither party gained or lost. In all these circumstances, however, no one ever thought of delivering the roots or of receiving them. Henry Munting, in 1636, sold to a merchant at Alkmaar, a tulip-root for 7000 florins, to be delivered in six months; but as the price during that time had fallen, the merchant paid, according to agreement, only ten per cent. “So that my father,” says the son, “received 700 florins for nothing; but he would much rather have delivered the root itself for 7000.” The term of these contracts was often much shorter, and on that account the trade became brisker. In proportion as more gained by this traffic, more engaged in it; and those who had money to pay to one, had soon money to receive of another; as at faro, one loses upon one card, and at the same time wins on another. The tulip-dealers often discounted sums also, and transferred their debts to one another; so that large sums were paid without cash, without bills, and without goods, as by the Virements at Lyons. The whole of this trade was a game at hazard, as the Mississippi trade was afterwards, and as stock-jobbing is at present. The only difference between the tulip-trade and stock-jobbing is, that at the end of the contract the price in the latter is determined by the Stock-exchange; whereas in the former it was determined by that at which most bargains were made. High- and low-priced kinds of tulips were procured, in order that both the rich and the poor might gamble with them; and the roots were weighed by perits, that an imagined whole might be divided, and that people might not only have whole, but half and quarter lots. Whoever is surprised that such a traffic should become general, needs only to reflect upon what is done where lotteries are established, by which trades are often neglected, and even abandoned, because a speedier mode of getting fortunes is pointed out to the lower classes. In short, the tulip-trade may very well serve to explain stock-jobbing, of which so much is written in gazettes, and of which so many talk in company without understanding it; and I hope, on that account, I shall be forgiven for employing so much time in illustrating what I should otherwise have considered as below my notice52.
At length, however, this trade fell all of a sudden. Among such a number of contracts many were broken; many had engaged to pay more than they were able; the whole stock of the adventurers was consumed by the extravagance of the winners; new adventurers no more engaged in it; and many, becoming sensible of the odious traffic in which they had been concerned, returned to their former occupations. By these means, as the value of tulips still fell, and never rose, the sellers wished to deliver the roots in