BARTERING: MAKING A DEAL WITHOUT MONEY

Jack found out what bartering was when he traded a cow for beans, which grew into a giant beanstalk.

You know the story. Jack, son of a very poor woman, traded his mother's only cow to a butcher, for a cap full of beans.

In the case of Jack and the butcher, a barter deal was suggested and a deal was made, but no money changed hands.

"Jack and the Bean Stalk" is just a fairy tale, but people are trading every day.

"Bartering" is just another word for trading or swapping something people have been doing since the start of time.

-- Like a frisbee for a baseball.

-- A Superman Comic for a Roy Rogers Comic.

-- A summer's worth of lawn mowing for a chance to swim in a back-yard pool.

-- The history of bartering probably started in a cave where someone swapped an animal tusk for a spear.

-- A beauty shop recently swapped a haircut and a shave for some floor cleaning.

-- A mechanic traded a tuneup job on an automobile for a month's use of a storage building to house his boat.

No cash changes hands, but many transactions are definitely in the books.

Such cashless exchanges, known as bartering, allow some businesses to keep busy when cash is scarce. Bartering (trading one item or service for another) was the origin of commerce. And the trading process is seeing a modern rebirth through a growing number of barter exchanges.

"Barter clubs" are springing up everywhere.

Check the Internet. You can swap property, services, clothing, automobiles or just menial tasks. In one family, a sister agrees to clear away the table if her sisters will do the dishes.

The era of Beanie Babies has created a number of "swap meets" in the Cape Girardeau area, where collectors of the stuffed toys can barter for Beanie Baby clothes, sleeping bags and other gear connected with the hobby.

Boys Scouts have held annual swap meets for a number of years, where Scouts and Scout collectors can trade Scout memorabilia. And the Capaha Antique Car Club will have sponsored swap meets for more than 30 years, featuring antique and classic car and truck parts for trade.

Last year, a special "Hobby Fair '98" was held in the St. Louis area, featuring a hobby swap meet for plastic models of all types, promos, diecast vehicles and Matchbox cars.

Some "high-stakes" swap meets are held in the United States. At one such bartering session, patrons paid $5,000 to attend a session to swap apartment buildings, hotels, subdivisions and other property.

With fax machines, Internet and e-mail making it quick and easy to exchange information about available goods and services, bartering clubs are on the grow. Nationwide, there are more than 600 bartering networks, with at least one in most metropolitan areas. The networks are for-profit businesses that keep computerized records of available goods and services, track client trades and create a market where buyers and sellers transact business.

Bartering clubs charge a fee to join, and in some cases, have monthly fees.

The number of businesses bartering in North America is expected to quadruple within a decade to 1.2 million. Between 1984 and 1994, the number doubled to 300,000.

Exchanges try to make bartering easy through a credit system in which most trades are indirect. If a roofer needs trees trimmed at his business, the tree trimmer doesn't have to get new shingles on her building to make a trade. The tree trimmer may use her trade credits to buy an accountant's services instead.

In Illinois about 3,500 businesses operate within a bartering network, according to Jack Schacht, president of the Illinois Trade Association. Most businesses involved in bartering are small to medium, he said, but there are also corporate accounts.

Services range from legal advice to roofing. Goods range from paint to eyeglasses.

Businesses barter routinely, says Bob Toupence, president of Traders League of America, headquartered at Janesville, Wis.

Bartering has long been popular at flea markets, secondhand shops and, of course, at swap meets. People wanting to make a trade should simply ask, "Are you willing to barter?" Some people will accept the offer.

Bartering is in its third big cycle in the United States.

-- Colonial Era: During the 17th and 18th centuries when money was scarce. Colonists depended on trade -- fur, pelts, corn, tobacco and deer skins.

-- Great Depression: During the 1930s, an Unemployed Citizen's League and National Development Association helped people arrange swaps and trades.

-- Early 1980s: Following a long recession, barter regained popularity. Hundreds of barter clubs emerged and remain popular today.

Bartering is not new.

At the beginning of mankind, there was no money and people traded for all items -- food, decorative items, clothing.

For those not familiar with "Jack and the Bean Stalk," never fear. Things turned out well for Jack and his mother. Involved in the story was a goose that laid golden eggs, and Jack an his mother live on in great contentment.