Barter is the direct exchange of goods or services without the use of money. Before the development of money, people used barter to get what they wanted. In the 1600’s and 1700’s, for example, trade between Europeans and West Africans was based on units of value called sortings. A sorting might consist of a barrel of palm oil, cloth for seven dresses, or a certain quantity of other goods. One sorting of cloth equaled one sorting of oil or of anything else. The amount of goods in each sorting rose and fell according to supply and demand.
Barter also takes place in societies where money is used. Today, hundreds of barter exchanges operate throughout the world. They consist of people who wish to barter goods or services that they believe have approximately equal value. Many such groups have several hundred members. Members receive trade credits for the money value of the goods or services they offer. Large exchanges use computers to keep track of each member’s trading account. By the late 1990’s, many barter exchanges had websites. However, only a few exchanges offered online trading.
See also Money (How money developed) ; Trading post .
