Tulip Mania
Tulip Mania referred to when the price of tulips caused an economic bubble so massive it almost bankrupted the Netherlands.
Bubbles were the result of market speculation, where each buyer was betting, that they could sell at a higher price to the next person.
After talking to the king, Will went to his office and pulled the price on the tulip bulb.
Sure, enough the price of a solid color tulip sold for almost 87 gold, and multi-patterned tulips sold for over 123 gold.
A multicolored tulip sold for more than some homes in Tirana. The price for a tulip at the king's wedding was 5 gold. That meant to the price of tulips had risen 170%.
No wonder the king was upset! Anyone would be upset when the item they wanted was increased by over 100% in six months.
Bubbles were the result of irrational consumption. Why anyone would want to buy a flower that cost as much as a house Will had no idea.
It was already evening, Will decided the tulip bubble could wait until tomorrow. Besides bubbles tend to pop themselves.
When Will walked into his house, he heard his family had already begun eating dinner in the hall. Taking off his coat and hat, Will made his way to the dining table.
Walking to his seat, Will noticed how happy Elizabeth and the children were. Edward and Camille were retelling Elizabeth the events at school.
"…And then a boy me a bouquet of tulips," Camille finished.
Will clutched his heart. To think so boy dared to give her flowers. Worst of all the boy gave her overpriced flowers.
"Father are you all, right?" Camille asked.
"To think in 6 months to you'll turn 13 next year. And these brats are already trying to court you," Will laughed.
"But, father some of my friends are already engaged," Camille said shyly, looking down, and tucking a loose strand of hair behind her head.
"Even some of my friends are engaged," Edward added.
"Elizabeth when did our children grow up so fast?" Will joked.
"I believe it happened last night," Elizabeth laughed.
Camille and Edward moaned at the lameness of their parents.
"Let's move away from talk of engagements to New Year's Festival. The festival is next week what do you want, besides money?" Will asked.
"A dragon sword!" Edward immediately asked.
"I think it's too soon for that type of sword. Maybe I'll get you one, after your mana test," Will replied.
"I want you to build libraries in all the orphanages," Camille asked.
"You don't want anything for yourself?" Elizabeth asked.
"Mother, everything I could ask for I already have. What I want is to give to those who can't afford it," Camille said passionately.
"Very well, I'll see to that. You have your mother's goodness. Edward, have you decided?" Will asked.
"I want a better sword. I'm tired of sparing against you and Kalista with wooden swords. I want to feel the weight of a real sword in my hand," Edward said swinging an imaginary sword.
"This weekend, I'll take you to visit Master Duncan. We'll forge your sword together. You should learn a craft," Will said.
"That sounds like fun," Edward said.
"Will?" Elizabeth looked at him worriedly.
"Don't worry he'll be safe," Will chuckled.
"Thank you," Elizabeth said.
Just then Will noticed the vase of tulips sitting on the table.
"Where did these tulips come from?" Will asked curiously.
"Honestly, it's amazing how little you observe. Since King Roland's wedding, I've asked the servants to put fresh tulips in the vases daily.
For six months we've had a vase of tulips in the Great Hall and around the manor. And you only noticed it today?" asked Elizabeth amazed.
"Where do the flowers come from?" Will asked.
"The greenhouse you built for our wedding and local sellers. Why are you so interested in tulips?" asked Elizabeth.
"You have the vases refilled daily with tulips? How much are we spending on flowers? Micheal grab my ledger?" Will asked.
Micheal walked in and reviewed the household account.
"This month we spent nearly 3,100 gold on flowers!" Will said in shock. To put in perspective that was 3,100,000 coppers. That was ludicrous.
"I didn't realize they were so expensive. Micheal, please ask Ms. Park to come here," Elizabeth said. She could tell Will was in shock. But so, was she, she had no idea flowers could cost so much? The flowers cost more than the budget of Gaia's Purse.
"Yes madam?" asked Ms. Park.
"From now on please fill the vases with winter pansies and Lenten roses," Elizabeth informed.
"And sell the tulips in the greenhouse," Will added. He might as well try to recoup his losses before the bubble burst.
"Very well my lord," Micheal said sending a manservant to inform the gardener.
In two days, he planned to write an editorial criticizing the ridiculous price of tulips. He'd also announce his house stopped buying tulips because the price of tulips has exceeded their value.
On Earth, Tulip Mania started when Dutch merchants brought tulips from Constantinople, where the flower had long been a favorite.
Ten years after their introduction to local markets, tulips became much sought after by the wealthy in Holland and Germany.
Rich people in Amsterdam sent for the bulbs directly from Constantinople and paid the most extravagant prices for them.
The rage for possessing them soon caught the middle classes of society, and merchants and shopkeepers, even of moderate means, began to vie with each other in the rarity of these flowers and the preposterous prices they paid for them.
In Holland, the demand for tulips of a rare species increased so much in the year 1636, that their sales were established on the
Stock Exchange of Amsterdam.
The stock brokers, ever on the alert for a new speculation, dealt largely in tulips, making use of all the means they so well knew how to employ, to cause fluctuations in prices.
At first, as in all these gambling manias, confidence was at its height, and everybody gained. The tulip brokers speculated on the rise and fall of the tulip stocks and made large profits by buying when prices fell and selling out when they rose.
Many individuals grew suddenly rich. A golden bait hung temptingly out before the people, and one after the other, they rushed to the tulip marts, like flies around a honey-pot.
Everyone imagined that the passion for tulips would last forever and that the wealthy from every part of the world would send them to Holland, and pay whatever prices were asked for them.
The riches of Europe would be concentrated on the shores of the Amsterdam, and poverty banished from Holland. Nobles, citizens, farmers, crafters, sailors, servants, and merchants all dabbled in tulips. People across the class liquidated their property and invested in flowers.
People sold their homes at ruinously low prices, just to buy tulips. In many instances, tulips were used as currency. During that frenzy, money poured into Holland from all directions.
The prices of the necessaries of life rose again by degrees: houses and lands, horses and carriages, and luxuries of every sort, rose in value with them, and for some months Holland seemed the very antechamber of Plutus.
Ten years later, prudence took hold and people began to see that this folly could not last forever.
Rich people no longer bought the flowers to keep them in their gardens, but to sell them again for less than half what they bought them for. It was seen that somebody must lose fearfully in the end.
As this conviction spread, prices fell, and never rose again. Confidence was destroyed, and a universal panic seized upon the dealers.
The cry of distress resounded everywhere, as the price of tulips fell from thousands of florins to cents.
Many who, for a brief season, had emerged from the humbler walks of life, were cast back into their original obscurity.
Substantial merchants were reduced almost to beggary, and many nobles saw their fortunes ruined beyond redemption.
Will did not want this ruin to befall Fermion. Only he saw the warning signs, and it was better to burst the bubble now than 9 years later.
Will planned to write the editorial tonight and delivered it to Diego tomorrow. Sitting at the table, Will wondered what would happen tomorrow, when people read his editorial. Would they dismiss it and continued buying overpriced tulips, or would the price of tulips finally fall?
"Will, are you listening?" Elizabeth asked, shaking Will out of his soliloquy.
As Elizabeth finished speaking, Micheal handed Will a note from Kurosawa marked urgent.
"Yes dear," Will said while reading the note.
"What do you want for New Year's besides the obligatory red letter?" Elizabeth asked frustrated Will kept focusing elsewhere.
"Guns?" Will asked stunned, rereading the note.