The World’s First Stock Exchange

Recto Runninghead Columbia University Press Publishers Since 1893 New York Chichester, West Sussex cup.columbia.edu Originally published as De bakermat van de beurs, copyright © 2011 Lodewijk Petram. Originally published by Uitgeverij Atlas, Amsterdam English-language edition copyright © 2014 Columbia University Press All rights reserved Columbia University Press gratefully acknowledges the support of the Dutch Foundation for Literature Library of Congress Cataloging-in-Publication Data Petram, Lodewijk. [De bakermat van de beurs. English] The world’s first stock exchange / Lodewijk Petram; translated by Lynne Richards. pages cm Translation of the authors De bakermat van de beurs. Includes bibliographical references and index. ISBN 978-0-231-16378-1 (cloth : alk. paper) — ISBN 978-0-231-53732-2 (e-book) 1. Stock exchanges—Netherlands—Amsterdam—History—17th century. 2. Stocks—Netherlands—Amsterdam—History—17th century. 3. East India Company—History—17th century. 4. Stock exchanges—History. 5. Amsterdam (Netherlands)—Economic conditions. I. Title. HG5570.A4P4813 2014 332.64'2492—dc23 2013039299 Columbia University Press books are printed on permanent and durable acid-free paper. This book is printed on paper with recycled content. Printed in the United States of America c 10 9 8 7 6 5 4 3 2 1 jacket image: Top: © Getty/Mario Tama. Bottom: Emanuel de Witte, The Courtyard of the Old Exchange in Amsterdam, 1653, Museum Boijmans van Beuningen, Rotterdam. jacket design: Jordan Wannemacher. References to websites (URLs) were accurate at the time of writing. Neither the author nor Columbia University Press is responsible for URLs that may have expired or changed since the manuscript was prepared. Brought to you by | National Library Board Authenticated Download Date | 12/30/17 1:49 AM Contents 1 A World-Famous Book 1 A New Company 7 2 3 Early Share Trading 4 Angry Shareholders 51 5 35 Fraud 77 6 The First Boom 100 Jewish Traders 122 7 8 9 Information 143 Trading Clubs 165 Brought to you by | National Library Board Authenticated Download Date | 12/30/17 1:49 AM Contents 10 Speculation 184 11 12 Crisis 202 The World-Famous Book Again 228 Epilogue 237 Acknowledgments and Overview of Literature and Sources 245 Notes 259 Glossary 275 Bibliography 279 Index 285 vi Brought to you by | National Library Board Authenticated Download Date | 12/30/17 1:49 AM The World’s First Stock Exchange Brought to you by | National Library Board Authenticated Download Date | 12/30/17 1:49 AM Brought to you by | National Library Board Authenticated Download Date | 12/30/17 1:49 AM A World-Famous Book 1 A World-Famous Book If one were to lead a stranger through the streets of Amsterdam and ask him where was, he would answer “among speculators,” for there is no corner where one does not talk shares. —joseph penso de la vega, confusión de confusiones this is not about Wall Street and the area around it, nor is it about the City of London. This is Amsterdam, the Amsterdam of around 1688—more than three centuries ago. It was not long since the great town houses along the rings of canals had been finished, and at night, save for a few flickering lanterns outside the houses, it was pitch dark in the streets and on the canals. On the far bank of the bay known as the IJ—clearly visible from the city—the bodies of condemned felons swung from the gallows. Was this really the place where people were talking about shares on every stre