For most of recorded history, barter, as a means of providing goods and services has existed. Before many cultures actually adopted some form of currency, the only way to procure goods and services was to barter. For example, if I wanted fabric for making curtains or bedding, then I would have to find an item of equal value to barter, or trade with the local fabric maker. If the products I made were not what the fabric maker was in need of, then it was up to me to find the items she wanted in order to complete a trade.
If you are not familiar with the concept of bartering, this is a great article on barter and it’s history from
What is the difference between barter and currency systems?
Basics of Bartering
Since the beginning of known history, humans have directly exchanged goods and services with one another in a trading system called bartering. Traditionally, bartering systems were used within the local community, but advances in technology and transportation make it possible for modern society to barter on a global level.
A farmer with eggs and milk can trade them to the local baker for a birthday cake and a loaf of bread. The baker then uses the milk and eggs to bake more bread, which she gives to the appliance repairman as payment for repairing her oven. Bartering makes it easier to negotiate, but lacks the flexibility of a currency system. Many small businesses accept non-monetary payments for their services and the IRS treats these bartered transactions the same as currency transactions for tax-reporting purposes. (For related reading, see: The Tax Implications of Bartering.)
The Introduction of Currency
Bartering has its limitations. The local blacksmith needs two loaves of bread, but if the baker needs plumbing services instead of new shoes for her horse, the blacksmith must find a plumber who needs new tools to make the trade. Currency systems were developed to eliminate this hassle. In early civilizations, common agreed-upon goods, such as animal skins or salt, served as currency that individuals could exchange for goods and services.”
Over time, people in the smaller cottage style business have brought back the concept of barter. If I hire you to do a service for me on a regular basis, and you need my services in turn on that same basis, why swap checks, why not simply trade services. All the better if you can trade in Itex dollars and have the ability to use those Itex dollars for other goods and services you might want or need.
Give me a call, we can have a cup of coffee or tea and talk more about barter.
Elizabeth Bowler
Itex- Treasure Coast Barter