BARTERING, in commerce, the ex changing of one commodity for another, or the trucking wares for wares, among merchants. Bartering was the original and natural way of commerce, there be ing no buying till money was invented, though, in exchanging, both parties are buyers and sellers. The only difficulty in this way of dealing lies in the due pro portioning the commodities to be ex changed, so as that neither party sustain any loss. Although the invention of money has not altogether put an end to barter, yet it has entirely prevented it from ap pearing in its real form in the books of merchants, as each article is there stated in its money value, and each sale is sup posed to be paid for in the circulating me. dium of the country, even in cases where no money whatever is made use of in the transaction.
The following example will sufficiently explain the method ofproportioning the commodities. Two merchants, A and B, barter ; A would exchange 5 C. 3qr.141b.
of pepper, worth 31. 108. per C. with B, for cotton worth 10d. per pound; how much cotton must B give A for this pep per? In order to solve this question, and all others of the same nature, we must first find, by proportion, the true value of that commodity whose quantity is given,which, in the present case, is pepper : and then find how much of the other commodity will amount to that sum, at the rate pro posed.
First, to find the value of the pepper, say, as 1 C. is to Si. 10s. so is 5 C. 39r. 141b. to 201. 11s. 3d. the true value of the pepper.
Then it is easy to conceive, that A ought to have as much cotton at lUd. per pound as will amount to 201. lls. 3d. which will be found by the following pro portion.
As 10d. is to llb. so is 201. Ils. 3d. to 4 C. lqr 17i/b.—And so much cotton must B give A, for his 5 C. 3qr. 14M. of pepper.