Bartering
Braidie LeClair
Background
Throughout history, there have been diverse and various objects and systems that operate as mediums of exchange[1]. While there has been great variety and diversity within different spheres of exchange, early transactions allotted for social barriers to be broken and for the formation of cultural diffusion[2]. From before the Common Era and well into it, a common form of commercialism was “direct exchange,” Direct exchange was a neutral form of commerce and consisted of two people trading two identical objects. Direct exchange was commonly used to strengthen alliance, to reaffirm kinship[3] or as part of a ritual act, often having an underlying sense of mutual obligation between the two partners. However, while direct exchange did allow for the development of alliances or political bonds, it did not facilitate increased diversityof the market at use. The same goods were exchanged at a very small rate of turnover and were often reserved for an elite group of individuals in specific situations.
Turning Point
Bartering is defined as “to trade by exchange of commodities rather than by the use of money” and often excludes the exchange of goods considered gifts or symbols, freeing it from common social or political stipulations[4]. The use of barter as a medium of exchange traces back to the Neolithic hunter-gatherer society where different tribes would exchange goods such as animal hides or tools. As society developed and changed, common objects of barter included cattle and other livestock, precious textiles and other common specialty goods. Bartering is purely an economic transaction and often lacked the sense of mutual obligation that governed direct exchange. In its core essence, rather than being embedded in a society, barter distinguishes itself as a purely economic transaction. This lack of contentious or tradition tied in with barter allowed it to facilitate significant economic development and had a wider and more direct impact on the development of economic systems as well as cultural exchange.
Effect
The exact development of the barter system cannot be traced to a direct event or year; however, its influence on culture and economic development since the Neolithic era has been extremely substantial. Bartering may be considered one of the most universal and archaic means by which common people obtained the goods they wanted or lacked. Bartering not only allowed for an exchange of goods to develop, but allowed for cultural diffusion. Bartering usually is considered a trade between two different communities as opposed to a trade within a given group. Bartering’s role in history can be identified in the way that it allowed commercial processes to develop, free from the sense of tradition or political obligation that previously guided a majority of the economic processes in early societies[5]. Bartering also allowed people to have a choice in the products that they were trading for. If during a bartering deal, one party was offered one product in exchange for something they didn’t desire, the other party had to bring forward a new object for the transaction to continue[6]. Bartering permitted spontaneous and accessible exchange for a wide variety of early people and helped develop and diversifycivilizations and cultures[7].
Many see the development of money as a solution that arose due to the inconvenience associated with bartering as a more convenient and practical mode of exchange. In John Law’s book “Money and Trade ConsideredWith a Proposal for Supplying the Nation with Money” in 1705, he draws attention to the idea “Domestick and Forreign Trade may be carried on by Barter; But not for so great a Value as by Money, nor with so much convenience”[8]. However, while money does allow for quicker and more direct negotiations and exchanges, it does not negate or render the bartering system obsolete. While in current civilization the use of money as a form of currency is extremely prevalent, the use of barter still exists. In modern society, many see bartering from a more sociological perspective rather than from an economic interest, for example, exchange of gifts and goods for a holiday or wedding[9]. While in a capitalist economy, the use of bartering is marginal; it still prevails and is used in modern societies. For example, in Spain, there is a growing number of “exchange markets” where participants will bring goods that they no longer have use for and swap them with another participant unwanted goods[10].
The barter system was the stepping-stone that allowed for all following economic development in terms of modes of exchange. Because of bartering, transactions on the average day-to-day level were able to develop and help facilitate a rapid exchange of goods among different societies. Bartering allowed for systems of bargaining, exchange with or without set rates of value, delayed exchange and the development of credit, and the use of money as a measure of standard value. While these systems are not confined or mutually exclusive to the barter system, they either function within or find their foundations within it. Bartering is the ancestral source for the modern economy; in its core, it facilitates and is the focal point of orientation for methods of exchange. The development of bartering allowed for every financial mode of exchange following it to develop in its individual entirety.
[1]Wright, Randall, and NobuhiroKiyotaki. "On Money as a Medium of Exchange."Journal of Political Economy 97.4,1989, p.927-54.
[2]Sillitoe, Paul. "Why Spheres of Exchange?", 2006, p.1-23.
[3]Schweizer, Thomas, and Douglas R. White, "Revitalizing the Study of Kinship and Exchange With Network Approaches”, Cambridge University Press, 1998, p.14-15.
[4]Chapman, Anne. "Barter as a Universal Mode of Exchange."1980, p. 33-83.
[5]Chapman, Anne. "Barter as a Universal Mode of Exchange."1980, p. 33-83.
[6]Humphrey, Caroline. "Barter and Economic Disintegration”,1985, p.51.
[7]Weatherford, Jack, “The History of Money: From Sandstone to Cyberspace”, Crown Publishers, 1997, p.4.
[8]Law, John, “Money and Trade Considered With a Proposal for Supplying the Nationwith Money”, 1705.
[9]Dalton, George. "Barter”, 1982, p. 181-90.
[10]Dirksen, Kirsten. "Barcelona's barter markets: an antidote to overconsumption”, 2009.
Bibliography
Chapman, Anne. "Barter as a Universal Mode of Exchange." L'Homme 20.3 (1980):
33-83. www.JStor.org. Web. 23 Apr. 2013. <http://www.jstor.org/stable/25131676>
Dalton, George. "Barter." Journal of Economic Issues 16.1 (1982): 181-90.
www.Jstor.org. Web. 23 Apr. 2013. <http://www.jstor.org/stable/
4225147>.
Dirksen, Kirsten. "Barcelona's barter markets: an antidote to overconsumption."
*faircompanies. *faircompanies, 2009. Web. 23 Apr. 2013.
<http://faircompanies.com/videos/view/
barcelonas-barter-markets-an-antidote-to-overconsumption/>.
Humphrey, Caroline. "Barter and Economic Disintegration." Man 20.1 (1985):
48-72. www.JStor.org. Web. 23 Apr. 2013. <http://www.jstor.org/stable/
2802221>.
Law, John. Money and Trade Considered With a Proposal for Supplying the Nation
with Money. Edinburgh: Heirs and Successors of Andrew Anderson, 1705.
The Avalon Project. Web. 23 Apr. 2013. <http://avalon.law.yale.edu/
18th_century/mon.asp>.
Schweizer, Thomas, and Douglas R. White. "Revitalizing the Study of Kinship and
Exchange With Network Approaches." 1998. Kinship, Networks and Exchange.
Ed. Schweizer and White. Cambridge: Cambridge University Press, 1998.
14-15. Print.
Sillitoe, Paul. "Why Spheres of Exchange?" Ethnology 45.1 (2006): 1-23.
www.JStor.org. Web. 23 Apr. 2013. <http://www.jstor.org/stable/
4617561>.
Weatherford, Jack. The History of Money: From Sandstone to Cyberspace. New York:
Crown Publishers, 1997. Print.
Wright, Randall, and NobuhiroKiyotaki. "On Money as a Medium of Exchange."
Journal of Political Economy 97.4 (1989): 927-54. www.JStor.org. Web. 23
Apr. 2013. <http://www.jstor.org/stable/1832197>.
Braidie LeClair
Background
Throughout history, there have been diverse and various objects and systems that operate as mediums of exchange[1]. While there has been great variety and diversity within different spheres of exchange, early transactions allotted for social barriers to be broken and for the formation of cultural diffusion[2]. From before the Common Era and well into it, a common form of commercialism was “direct exchange,” Direct exchange was a neutral form of commerce and consisted of two people trading two identical objects. Direct exchange was commonly used to strengthen alliance, to reaffirm kinship[3] or as part of a ritual act, often having an underlying sense of mutual obligation between the two partners. However, while direct exchange did allow for the development of alliances or political bonds, it did not facilitate increased diversityof the market at use. The same goods were exchanged at a very small rate of turnover and were often reserved for an elite group of individuals in specific situations.
Turning Point
Bartering is defined as “to trade by exchange of commodities rather than by the use of money” and often excludes the exchange of goods considered gifts or symbols, freeing it from common social or political stipulations[4]. The use of barter as a medium of exchange traces back to the Neolithic hunter-gatherer society where different tribes would exchange goods such as animal hides or tools. As society developed and changed, common objects of barter included cattle and other livestock, precious textiles and other common specialty goods. Bartering is purely an economic transaction and often lacked the sense of mutual obligation that governed direct exchange. In its core essence, rather than being embedded in a society, barter distinguishes itself as a purely economic transaction. This lack of contentious or tradition tied in with barter allowed it to facilitate significant economic development and had a wider and more direct impact on the development of economic systems as well as cultural exchange.
Effect
The exact development of the barter system cannot be traced to a direct event or year; however, its influence on culture and economic development since the Neolithic era has been extremely substantial. Bartering may be considered one of the most universal and archaic means by which common people obtained the goods they wanted or lacked. Bartering not only allowed for an exchange of goods to develop, but allowed for cultural diffusion. Bartering usually is considered a trade between two different communities as opposed to a trade within a given group. Bartering’s role in history can be identified in the way that it allowed commercial processes to develop, free from the sense of tradition or political obligation that previously guided a majority of the economic processes in early societies[5]. Bartering also allowed people to have a choice in the products that they were trading for. If during a bartering deal, one party was offered one product in exchange for something they didn’t desire, the other party had to bring forward a new object for the transaction to continue[6]. Bartering permitted spontaneous and accessible exchange for a wide variety of early people and helped develop and diversifycivilizations and cultures[7].
Many see the development of money as a solution that arose due to the inconvenience associated with bartering as a more convenient and practical mode of exchange. In John Law’s book “Money and Trade ConsideredWith a Proposal for Supplying the Nation with Money” in 1705, he draws attention to the idea “Domestick and Forreign Trade may be carried on by Barter; But not for so great a Value as by Money, nor with so much convenience”[8]. However, while money does allow for quicker and more direct negotiations and exchanges, it does not negate or render the bartering system obsolete. While in current civilization the use of money as a form of currency is extremely prevalent, the use of barter still exists. In modern society, many see bartering from a more sociological perspective rather than from an economic interest, for example, exchange of gifts and goods for a holiday or wedding[9]. While in a capitalist economy, the use of bartering is marginal; it still prevails and is used in modern societies. For example, in Spain, there is a growing number of “exchange markets” where participants will bring goods that they no longer have use for and swap them with another participant unwanted goods[10].
The barter system was the stepping-stone that allowed for all following economic development in terms of modes of exchange. Because of bartering, transactions on the average day-to-day level were able to develop and help facilitate a rapid exchange of goods among different societies. Bartering allowed for systems of bargaining, exchange with or without set rates of value, delayed exchange and the development of credit, and the use of money as a measure of standard value. While these systems are not confined or mutually exclusive to the barter system, they either function within or find their foundations within it. Bartering is the ancestral source for the modern economy; in its core, it facilitates and is the focal point of orientation for methods of exchange. The development of bartering allowed for every financial mode of exchange following it to develop in its individual entirety.
[1]Wright, Randall, and NobuhiroKiyotaki. "On Money as a Medium of Exchange."Journal of Political Economy 97.4,1989, p.927-54.
[2]Sillitoe, Paul. "Why Spheres of Exchange?", 2006, p.1-23.
[3]Schweizer, Thomas, and Douglas R. White, "Revitalizing the Study of Kinship and Exchange With Network Approaches”, Cambridge University Press, 1998, p.14-15.
[4]Chapman, Anne. "Barter as a Universal Mode of Exchange."1980, p. 33-83.
[5]Chapman, Anne. "Barter as a Universal Mode of Exchange."1980, p. 33-83.
[6]Humphrey, Caroline. "Barter and Economic Disintegration”,1985, p.51.
[7]Weatherford, Jack, “The History of Money: From Sandstone to Cyberspace”, Crown Publishers, 1997, p.4.
[8]Law, John, “Money and Trade Considered With a Proposal for Supplying the Nationwith Money”, 1705.
[9]Dalton, George. "Barter”, 1982, p. 181-90.
[10]Dirksen, Kirsten. "Barcelona's barter markets: an antidote to overconsumption”, 2009.
Bibliography
Chapman, Anne. "Barter as a Universal Mode of Exchange." L'Homme 20.3 (1980):
33-83. www.JStor.org. Web. 23 Apr. 2013. <http://www.jstor.org/stable/25131676>
Dalton, George. "Barter." Journal of Economic Issues 16.1 (1982): 181-90.
www.Jstor.org. Web. 23 Apr. 2013. <http://www.jstor.org/stable/
4225147>.
Dirksen, Kirsten. "Barcelona's barter markets: an antidote to overconsumption."
*faircompanies. *faircompanies, 2009. Web. 23 Apr. 2013.
<http://faircompanies.com/videos/view/
barcelonas-barter-markets-an-antidote-to-overconsumption/>.
Humphrey, Caroline. "Barter and Economic Disintegration." Man 20.1 (1985):
48-72. www.JStor.org. Web. 23 Apr. 2013. <http://www.jstor.org/stable/
2802221>.
Law, John. Money and Trade Considered With a Proposal for Supplying the Nation
with Money. Edinburgh: Heirs and Successors of Andrew Anderson, 1705.
The Avalon Project. Web. 23 Apr. 2013. <http://avalon.law.yale.edu/
18th_century/mon.asp>.
Schweizer, Thomas, and Douglas R. White. "Revitalizing the Study of Kinship and
Exchange With Network Approaches." 1998. Kinship, Networks and Exchange.
Ed. Schweizer and White. Cambridge: Cambridge University Press, 1998.
14-15. Print.
Sillitoe, Paul. "Why Spheres of Exchange?" Ethnology 45.1 (2006): 1-23.
www.JStor.org. Web. 23 Apr. 2013. <http://www.jstor.org/stable/
4617561>.
Weatherford, Jack. The History of Money: From Sandstone to Cyberspace. New York:
Crown Publishers, 1997. Print.
Wright, Randall, and NobuhiroKiyotaki. "On Money as a Medium of Exchange."
Journal of Political Economy 97.4 (1989): 927-54. www.JStor.org. Web. 23
Apr. 2013. <http://www.jstor.org/stable/1832197>.