Fred has a loaf of bread to trade, wants honeyPosted by william r sanford72 (here)
the barter system always seemed fair to me....i have said jar o honey....you have said mellon...lets trade.nice and simple.
Jim has a fish to trade, wants a loaf of bread
Frank has honey to trade, wants a fish
Fred and Frank meet on the corner to barter. Fred offers Frank a loaf of bread for his honey, but Frank says "no thank you" to Fred, who moves on with his bread to the next corner in search of a more favorable transaction.
At the next corner Fred meets Jim. Jim is willing to trade a fish for Fred's loaf bread. But Fred does not want a fish, he wants honey, so he says "no thank you" to Jim. Fred, the good citizen he is, remembers Frank specifically wants a fish, so he suggests that Jim peddle his wares to the yonder corner where a man named Frank would be willing to trade for his fish.
Jim takes Fred's advise. He peddles his fish to the yonder corner and meets Frank, but all Frank has to offer is honey. Jim wants bread.
The moral of the story? This transaction requires a currency. Anything. Sea shells, bird feathers, a pebble of gold or silver. Anything to facilitate the transaction. If all three men met at the same corner, and at the same time, they would likely figure out a way to barter successfully between them. But an abstract currency, that serves as a measure of value, alleviates that necessity.