9
Post-Collapse Tulip Prices
The tulip speculation collapsed after the first week of February 1637, but there is no explanation for this timing. A general suspension of settlement occurred on contracts coming due—that is, contracts were not rolled over. On February 24, 1637, delegates of florists meeting in Amsterdam proposed that sales of tulips contracted on or before November 30, 1636 should be executed. For later contracts, the buyer would be given the right to reject the deal on payment of 10 percent of the sale price to the seller. This may be the source of the claims in Mackay that bulbs could not sell at 10 percent of their peak prices. The authorities did not adopt this suggestion. On April 27, 1637, the States of Holland decided to suspend all contracts, giving the seller of existing bulbs the right to sell contracted bulbs at market prices during the suspension. The buyer in the contract would be responsible for the difference between this market price and whatever price the authorities eventually determined for contract settlement. This decision released
