HISTORY OF BARTER

History of Barter System

It was one of the earliest forms of trading. It facilitated exchange of goods and services, as money was not invented in those times. The history of bartering can be traced back to 6000 BC. It is believed that barter system was introduced by the tribes of Mesopotamia. This system was then adopted by the Phoenicians, who bartered their goods to people in other cities located across the oceans. An improved system of bartering was developed in Babylonia too. People used to exchange their goods for weapons, tea, spices, and food items. Sometimes, even human skulls were used for barter. Another popular item used for exchange was salt. Salt was so valuable at that time, that the salary of Roman soldiers was paid in salt. The main drawback of this system was that there was no standard criteria to determine the value of goods and services, and this resulted in disputes and clashes. These problems were sorted out with the invention of money, but the barter system continued to exist in some form or another.


Barter services became popular during the Great Depression in the 1930s', which witnessed a scarcity of money. The barter system was used as a way of obtaining things like food and other services. The trading was done between people or through groups, who acted as agents and facilitated third party bartering. These groups were like banks, where people maintained their accounts. In case of sale of any of the items, the account of the owner would be credited and the account of the buyer would be debited...Barter system has been in use throughout the world for centuries. The invention of money did not result in the end of bartering services. Sometimes, monetary crises fueled the revival of this system and the current recession has once again set a stage for its comeback. Even though money is there for trading and for business, barter system still exists and has become more strong and organized.