Most economic discussion today revolves around the question whether governments and central banks should give out generous lines of credits or not. The #seventeenthcentury saw a number of #financialcrisis too. 1/11

Heavy debasing of currency around 1621, paired with the absence of an effective and country-wide taxation led to the hyperinflation, known today as #kipperundwipper 2/11

In the Netherlands, a steep rise in the price of #tulips led to the development of a speculative bubble known as #tulipmania and prices for some tulip bulbs had risen to about ten times the annual income of a skilled craftsman. 3/11

Many took out loans against their houses and possessions and used this as leverage to buy tulips in the hopes of large returns. When everyone started selling in 1637, they saw their saw their financial fate crumble. 4/11

The repercussions of this crisis in the Holy Roman Empire were not too large, yet it opened the door for discussion of debt and credit, especially when used to finance projects with inflated promises of returns. One #broadsheet from 1637 declared credit dead. 5/11

Some of the funeral guests were mourning and solemn, shocked by credit’s death… 6/11

… others were a bit unfazed, or drowned their worries in alcohol. 7/11

In rhymed verses, the text below the image details the unsuccessful attempts of one individual to on buy goods from bakers, butchers, pewters and goldsmiths, shoemakers, innkeepers, merchants, furriers and other trades for credit. 8/11

One comes to the baker:
My dear baker, lend me three breads,
For I suffer from great hunger.
In good faith and with great fidelity I promise,
To pay you back, just do not be shy. 9/11

The baker replies: if you have money, then I have bread,
Or else I do not care much for your suffering.
Look there, credit lies in its tomb,
And is not valued anymore. 9/11

One comes to the shoemaker:
I desire a new pair of shoes,
And I shall pay you for this very soon.
There shall be no more clauses to our contract,
I shall only pay you the sum before long. 10/11

The shoemaker replies: My leather is more durable than your promise of credit.
So if you want the shoes that please you,
Credit is dead, so hand me the money immediately. 10/11

Source: Anon., Contrafactur oder ware Abbildung Deß in allen Landen verlohrnen/ verdorbenen/ gestorbenen Edlen und Vesten gewesenen Herrn Credits (s.l.: s.n., 1637). #bookhistory 11/11