It helped that she had something other people wanted. “If I had gone in and offered to bake a pie for a free night at their hotel,’ they’d probably have said ‘no.’ ” One Barter Babe, Carly Boyce, knitted Simmons an exact replica of a favourite hat Simmons had lost but luckily had a picture of herself wearing. When it came time for the trade, Boyce remembers feeling guilty because the hat was so easy for her to make, and she told Simmons so. Simmons laughed: it was incredibly easy, she told Boyce, for her to give financial advice. It was a funny conversation, Boyce says, but also one that gets at the essence of bartering: when money is taken out of the equation, value is a moving, customizable concept—and that’s just the way most barterers like it.
No, said Mises, for if taken back far enough, there comes a point at which money first emerges as a medium of exchange out of a pure barter economy Prior to this, it is valued only for its non-monetary uses as a commodity The demand for money is therefore pushed back to the last day of barter, where goods are traded only in direct exchange, and where the temporal element of the regression theorem ends It is in this way that all charges of circularity are obviated.
The Owenite socialists in Britain and the United States in the 1830s were the first to attempt to organize barter exchanges. Owenism developed a "theory of equitable exchange" as a critique of the exploitative wage relationship between capitalist and labourer, by which all profit accrued to the capitalist. To counteract the uneven playing field between employers and employed, they proposed "schemes of labour notes based on labour time, thus institutionalizing Owen's demand that human labour, not money, be made the standard of value."[16] This alternate currency eliminated price variability between markets, as well as the role of merchants who bought low and sold high. The system arose in a period where paper currency was an innovation. Paper currency was an I.O.U. circulated by a bank (a promise to pay, not a payment in itself). Both merchants and an unstable paper currency created difficulties for direct producers.
Barter, the direct exchange of goods or services—without an intervening medium of exchange or money—either according to established rates of exchange or by bargaining. It is considered the oldest form of commerce. Barter is common among traditional societies, particularly in those communities with some developed form of market. Goods may be bartered within a group as well as between groups, although gift exchange probably accounts for most intragroup trade, particularly in small and relatively simple societies. Where barter and gift exchange coexist, the simple barter of ordinary household items or food is distinguished from ceremonial exchange (such as a potlatch), which serves purposes other than purely economic ones.
As Orlove noted, barter may occur in commercial economies, usually during periods of monetary crisis. During such a crisis, currency may be in short supply, or highly devalued through hyperinflation. In such cases, money ceases to be the universal medium of exchange or standard of value. Money may be in such short supply that it becomes an item of barter itself rather than the means of exchange. Barter may also occur when people cannot afford to keep money (as when hyperinflation quickly devalues it).[15]
During economic downturns, when there is a keenly felt shortage of jobs and cash, people have historically adopted barter systems. The world’s most established bartering-style system is Switzerland’s wir: the German word for “we” as well as the abbreviation of Wirtschaftsring, which translates loosely to “economic circle.” In 1934, the economy in Switzerland had tanked—as it had in much of the world. Two businessmen who were facing bankruptcy, Paul Enz and Werner Zimmermann, gathered 15 of their associates in Zurich and hashed out a solution: a mutual credit system. 

In 2012, the average Canadian had more than $27,000 in consumer debt. Wages are shrinking, costs are rising, and one-third of us are living paycheque to paycheque. “Most of us live beyond our means both financially and ecologically,” says Marta Nowinska, founder and president of one of Canada’s largest bartering communities, Swapsity, which launched in 2010. “Swapping is a viable approach to solving a lot of real problems,” she says. Like Simmons, Nowinska left a Bay Street job to join the world of barter. The idea for Swapsity came to her one day in 2006: she was on the subway and noticed how miserable everybody looked. She started to think about a business that could empower people. At first, she thought people could swap jobs, but dismissed it as unrealistic. Then: what if they could swap other things? She developed a business plan and launched a website.
Debts in the wir currency, assigned the same value as the Swiss franc, could be paid with sales to any member of the bartering circle: if a baker needed to “purchase” eggs and flour from a farmer, the baker could pay off the debt by “selling” baked goods to another wir member. The farmer, in turn, could use his newly acquired credit to “buy” his own needed items or services. Despite a bank-led campaign to discredit the system, wir stuck. Today, it has more than 60,000 business participants and does the equivalent of about $4.4 billion in annual trade.
mid-15c., apparently from Old French barater "to barter, cheat, deceive, haggle" (also, "to have sexual intercourse"), 12c., of uncertain origin, perhaps from a Celtic language (cf. Irish brath "treachery"). Connection between "trading" and "cheating" exists in several languages. Related: Bartered; bartering. The noun is first recorded 1590s, from the verb.
It is estimated that over 450,000 businesses in the United States were involved in barter exchange activities in 2010. There are approximately 400 commercial and corporate barter companies serving all parts of the world. There are many opportunities for entrepreneurs to start a barter exchange. Several major cities in the U.S. and Canada do not currently have a local barter exchange. There are two industry groups in the United States, the National Association of Trade Exchanges (NATE) and the International Reciprocal Trade Association (IRTA). Both offer training and promote high ethical standards among their members. Moreover, each has created its own currency through which its member barter companies can trade. NATE's currency is the known as the BANC and IRTA's currency is called Universal Currency (UC).[citation needed] In Canada, the largest barter exchange is Tradebank, founded in 1987. In the United States, the largest barter exchange and corporate trade group is International Monetary Systems, founded in 1985, now with representation in various countries. In Australia and New Zealand the largest barter exchange is Bartercard, founded in 1991, with offices in the United Kingdom,United States, Cyprus,UAE and Thailand.[citation needed]
Debts in the wir currency, assigned the same value as the Swiss franc, could be paid with sales to any member of the bartering circle: if a baker needed to “purchase” eggs and flour from a farmer, the baker could pay off the debt by “selling” baked goods to another wir member. The farmer, in turn, could use his newly acquired credit to “buy” his own needed items or services. Despite a bank-led campaign to discredit the system, wir stuck. Today, it has more than 60,000 business participants and does the equivalent of about $4.4 billion in annual trade.
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However, this isn’t always possible. For instance, you may have a $150 digital music player and want a small refrigerator worth $100. In this case, if both parties are certain of what they want and understand the difference in value, there should be no barterer’s remorse. Alternatively, you can ask for the mini-fridge plus $50 to make the trade – the worst anyone can say is “no.”
In late 2012, Toronto even got its own spinoff of Trade School, a model that originated in New York in 2010. The Toronto Trade School holds classes—on anything from spoken word to origami flower–making to bicycle maintenance—and invites students to “pay” with an item or service from the teacher’s barter wish list. It has hosted more than 70 classes. 

On paper, this sounds a bit like delayed barter, but it bears some significant differences. For one thing, it’s much more efficient than Smith’s idea of a barter system, since it doesn’t depend on each person simultaneously having what the other wants. It’s also not tit for tat: No one ever assigns a specific value to the meat or cake or house-building labor, meaning debts can’t be transferred. 

Barter Network Ltd. is a proud member of The International Reciprocal Trade Association, IRTA, which is a non-profit organization committed to promoting just and equitable standards of practice and operation within the Modern Trade and Barter and other Alternative Capital Systems Industry, by raising the awareness and value of these processes to the entire Global Community. IRTA provide all Industry Members with an ethnically based global organization, dedicated to the advancement of Modern Trade and Barter and other Alternative Capital Systems, through the use of education, self-regulation, high standards and government relations. The Board of IRTA consists of Key Players in the Barter Industry, With Patti Falus President of Barter Network Ltd. being the only Canadian who sits on the Board. 

I see a LOT of potential when it comes to locally owned businesses but it’s really a shame to see them open the beginning of May and by November they’re already closed (and they’re in locations I’d LOVE to be at when things start taking off – Dundas between Jarvis and Mutual for example) – same old crap still comes and goes though. Bartering doesn’t mean you’re being taken or taking someone ‘for a ride’ – it’s how small town downtowns survive and in many ways we can learn from that. When a customer likes what you provide they trust your judgment and are likely to check out that juice bar two doors down if you’re promoting it. The key to get back our stable neighbourhoods – I’m looking at us, Downtown East – is the commitment to hanging in there and helping each other out. When you’re doing your own business you know it’s not just a 40 hour workweek – it’s all the time. Any chance we can take to promote not just our business but what we love doing…as well as being happy to see neighbouring businesses do well…makes all this hard work worth it.
Yet after three years with the firm, she was dissatisfied. She was spending all her time advising millionaires when she wanted to work with average Torontonians, especially women. She couldn’t help noticing that most of her female friends were broke, confused and floundering. Online, her social media feeds were filled with panicky talk of recession budgets and empty wallets. There was one problem: those women couldn’t afford to pay her, and she certainly couldn’t afford to work for free. “I really wanted to do it,” she says, “but I couldn’t figure out a business model.”
Communities of Iroquois Native Americans, for instance, stockpiled their goods in longhouses. Female councils then allocated the goods, explains Graeber. Other indigenous communities relied on “gift economies,” which went something like this: If you were a baker who needed meat, you didn’t offer your bagels for the butcher’s steaks. Instead, you got your wife to hint to the butcher’s wife that you two were low on iron, and she’d say something like “Oh really? Have a hamburger, we’ve got plenty!” Down the line, the butcher might want a birthday cake, or help moving to a new apartment, and you’d help him out.
It is estimated that over 450,000 businesses in the United States were involved in barter exchange activities in 2010. There are approximately 400 commercial and corporate barter companies serving all parts of the world. There are many opportunities for entrepreneurs to start a barter exchange. Several major cities in the U.S. and Canada do not currently have a local barter exchange. There are two industry groups in the United States, the National Association of Trade Exchanges (NATE) and the International Reciprocal Trade Association (IRTA). Both offer training and promote high ethical standards among their members. Moreover, each has created its own currency through which its member barter companies can trade. NATE's currency is the known as the BANC and IRTA's currency is called Universal Currency (UC).[citation needed] In Canada, the largest barter exchange is Tradebank, founded in 1987. In the United States, the largest barter exchange and corporate trade group is International Monetary Systems, founded in 1985, now with representation in various countries. In Australia and New Zealand the largest barter exchange is Bartercard, founded in 1991, with offices in the United Kingdom,United States, Cyprus,UAE and Thailand.[citation needed]
It helped that she had something other people wanted. “If I had gone in and offered to bake a pie for a free night at their hotel,’ they’d probably have said ‘no.’ ” One Barter Babe, Carly Boyce, knitted Simmons an exact replica of a favourite hat Simmons had lost but luckily had a picture of herself wearing. When it came time for the trade, Boyce remembers feeling guilty because the hat was so easy for her to make, and she told Simmons so. Simmons laughed: it was incredibly easy, she told Boyce, for her to give financial advice. It was a funny conversation, Boyce says, but also one that gets at the essence of bartering: when money is taken out of the equation, value is a moving, customizable concept—and that’s just the way most barterers like it.
I see a LOT of potential when it comes to locally owned businesses but it’s really a shame to see them open the beginning of May and by November they’re already closed (and they’re in locations I’d LOVE to be at when things start taking off – Dundas between Jarvis and Mutual for example) – same old crap still comes and goes though. Bartering doesn’t mean you’re being taken or taking someone ‘for a ride’ – it’s how small town downtowns survive and in many ways we can learn from that. When a customer likes what you provide they trust your judgment and are likely to check out that juice bar two doors down if you’re promoting it. The key to get back our stable neighbourhoods – I’m looking at us, Downtown East – is the commitment to hanging in there and helping each other out. When you’re doing your own business you know it’s not just a 40 hour workweek – it’s all the time. Any chance we can take to promote not just our business but what we love doing…as well as being happy to see neighbouring businesses do well…makes all this hard work worth it.

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The first 23 Barter Babes to join were friends and former PH&N co-workers who wanted to support Simmons. They mostly traded items and services to help out with the launch party: a lot of food, a press release, coat racks, silent auction items, courier services and social media consulting. Barter Babe No. 24, Grace Poon, was the first person to sign up for the project with whom Simmons had no prior connection. In exchange for Simmons’s financial advice, Poon provided graphic designs for an investment presentation (which Simmons still uses today). She remembers being excited, but also nervous: it was the first trade she’d made with someone who didn’t feel obligated to give her unconditional support. She needn’t have worried.
In Spain (particularly the Catalonia region) there is a growing number of exchange markets.[24] These barter markets or swap meets work without money. Participants bring things they do not need and exchange them for the unwanted goods of another participant. Swapping among three parties often helps satisfy tastes when trying to get around the rule that money is not allowed.[25]
But the harm may go deeper than a mistaken view of human psychology. According to Graeber, once one assigns specific values to objects, as one does in a money-based economy, it becomes all too easy to assign value to people, perhaps not creating but at least enabling institutions such as slavery (in which people can be bought) and imperialism (which is made possible by a system that can feed and pay soldiers fighting far from their homes).
Anthropologists have argued, in contrast, "that when something resembling barter does occur in stateless societies it is almost always between strangers."[6] Barter occurred between strangers, not fellow villagers, and hence cannot be used to naturalistically explain the origin of money without the state. Since most people engaged in trade knew each other, exchange was fostered through the extension of credit.[7][8] Marcel Mauss, author of 'The Gift', argued that the first economic contracts were to not act in one's economic self-interest, and that before money, exchange was fostered through the processes of reciprocity and redistribution, not barter.[9] Everyday exchange relations in such societies are characterized by generalized reciprocity, or a non-calculative familial "communism" where each takes according to their needs, and gives as they have.[10]
Bartering is the process of obtaining goods or services by direct exchange without the use of currency. In times of economic instability or currency devaluation, it can be a great way to ensure the flow of necessary items and services into your household without using precious funds. Historically, face-to-face exchanges between familiar parties were most common, but the Internet has opened up a new medium for bartering opportunities for both person-to-person exchanges and third-party facilitated transactions.
Debts in the wir currency, assigned the same value as the Swiss franc, could be paid with sales to any member of the bartering circle: if a baker needed to “purchase” eggs and flour from a farmer, the baker could pay off the debt by “selling” baked goods to another wir member. The farmer, in turn, could use his newly acquired credit to “buy” his own needed items or services. Despite a bank-led campaign to discredit the system, wir stuck. Today, it has more than 60,000 business participants and does the equivalent of about $4.4 billion in annual trade.

Adam Smith, the father of modern economics, sought to demonstrate that markets (and economies) pre-existed the state, and hence should be free of government regulation. He argued (against conventional wisdom) that money was not the creation of governments. Markets emerged, in his view, out of the division of labour, by which individuals began to specialize in specific crafts and hence had to depend on others for subsistence goods. These goods were first exchanged by barter. Specialization depended on trade, but was hindered by the "double coincidence of wants" which barter requires, i.e., for the exchange to occur, each participant must want what the other has. To complete this hypothetical history, craftsmen would stockpile one particular good, be it salt or metal, that they thought no one would refuse. This is the origin of money according to Smith. Money, as a universally desired medium of exchange, allows each half of the transaction to be separated.[2]
Deciding to become a BarterPay member was a huge a step forward for our company. As we were just starting out when we joined, it gave us many advertising and opportunities which we wouldn't have been able to afford otherwise. We were also able to network with other companies in BarterPay which really helped get our name out to non trade clients. I believe that because of BarterPay our company is years ahead of where it would be without having decided to join.

During economic downturns, when there is a keenly felt shortage of jobs and cash, people have historically adopted barter systems. The world’s most established bartering-style system is Switzerland’s wir: the German word for “we” as well as the abbreviation of Wirtschaftsring, which translates loosely to “economic circle.” In 1934, the economy in Switzerland had tanked—as it had in much of the world. Two businessmen who were facing bankruptcy, Paul Enz and Werner Zimmermann, gathered 15 of their associates in Zurich and hashed out a solution: a mutual credit system.
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