BACK TO BARTER

Dominion, Volume 27, Issue 59, 2 December 1933, Page 18

BACK TO BARTER

Clearing House in London

The first step toward the modernisation in Britain of the oldest form of trading—barter—has just been taken, the “Sunday Chronicle” learned recently, with the opening in London of a clearing house for barter transactions.

Led by Mr. Holford Knight, M.P., the World Barter and Trading Company includes many distinguished figures in business. Among the directors are the Hon. Briar! Lewis, the racing motorist, and Mr. Max Schultze, the “Herring King.” “The present state of world trade has reached such a pitch,” Mr. R. T. Hird, joint managing director of the new enterprise, told a “Sunday Chronicle” representative, “that barter appears to be the only method of trading in certain parts of the world. “Now that a central clearing house for barter transactions has been formed, we have already entered into contracts' which will mean the shipment of millions of pounds’ worth of goods to and from this country.” Explaining the necessity for barter. Mr. Hird said •’

“A few months ago a North of England manufacturer obtained an order for machinery to be delivered to a buyer in South America. “The execution of this order would have meant work for hundreds of men in this country, but exchange restrictions in the South American country made it impossible for the British manufacturer to be paid in cash. “Ultimately the British manufacturer accepted a quantity of hides equal to the value of his machinery, and these were then sold in England, thus paying the manufacturer for his goods.”

About 800 British firms have now agreed to trade on this system when they cannot obtain cash for their goods.