History of Auctions
The exact date and time that auctions were first organized is not exactly
known. Historians agree on one thing - auctions have been around for a very
long time.
In the fifth century, the Greeks held auctions to sell physically mature women
to the highest bidder for the purpose of marriage. Obviously, the women with
special beauty were subject to the most vigorous bidding and the prices paid
were high. Owners of the less attractive women had to add dowries or other
monetary offers in order to make the sale.
The Romans were the first to organize sales of goods at auction. Auctions were
used as an organized process of disposing and marketing of goods produced in the
area. The auction method was also used to sell items seized during wars with
rivals.
The Chinese used auctions to sell surplus property to raise money for their
religious leaders and temples. They seemed to use similar steps toward planning
and managing a sale as we do today.
The British organized regular auctions of books and art in the 1600's. The sale
of goods at "public outcry" seemed to be a normal method of selling
general goods. Catalogs of auctions in England have survived the times. The
terms "auction" and "public auction" appeared in English
writings in the late 1600's.
As American culture began to evolve in the 1700's, the methods of the English
came to America with English immigrants. Because there was no thriving economy,
there was very little place for auctions and auctioneers. The only time that
auctions seemed to be necessary were times when property needed to be sold to
satisfy debts or for nonpayment of taxes. The stigma of selling at "forced
sales" attached itself to the auction business for centuries.
Slavery did not help the reputation of auctioneers. Public sales of slaves
helped fuel the largest slave market in the western world. Selling slaves at
"public outcry" began in Virginia and quickly spread south.
When the Civil War erupted, auctioneers found themselves without a product to
sell. Many migrated further west. Others followed the troops and sold property
that remained after the battle. This practice probably did more to degrade the
auction method than any other single act.
As the Civil War progressed, many troop battalions made a practice of seizing
property of land owners and merchants as they marched. Contraband would be
collected and carried to a favorable area, then the Colonel or commanding
officer would sell the goods at public sale. The sales were not very ethical and
did nothing to help the already damaged image of the auctioneer.
Even after the Civil War, military Colonels traveled to sell surplus army goods
and seized goods. Auctioneers followed some of the same trails and dressed
similar to the army Colonels to such an extent that the public began to
recognize auctioneers as "Colonel." This title of "Colonel"
stuck and is still used to refer to auctioneers today.
As the country licked its war wounds, auctioneers traveled to larger cities and
ports to apply their trade. Selling goods off merchant ships, disposing of
damaged goods, and selling estates became the mainstay of the business.
Auctioneers were regulated to selling anything they could get. They were
successful in making money, but were not so successful in helping their
reputation and image.
The auction business remained in the same rut through the remainder of the
1800's and through the first half of the 1900's. The business began to make
great strides after World War II when businessmen began to see an opportunity to
use the auction method as an alternate marketing tool. The sale of goods and
real estate at private sale was booming in the post war period. There was a need
in certain cases to move real estate and personal property faster than the
private market would allow. The modern auction business was born.
Now businessmen in business suits and ties began to nurture the business and
raising the reputation to a higher plane. Nashville and Middle Tennessee became
the nucleus for this transformation. Auctioneers now had business links to
banks, attorneys, accountants, the court system, government agencies, and the
public. The Middle Tennessee area became a hotbed of auction activity and
remains one of the hottest auction markets in the world today.
Source: Nashville Auction School. http://www.learntoauction.com/auction_history.html
