I found this on Ebay, but it's not mine! That brand of Shaving Soap is "MAYBE" the first commercially made? Ebay held the only picture I could find of this "Walnut Shaving Soap!!" http://www.ebay.com/itm/Hunter-with...rs-Shaving-Soap-4653-/161079834437?rmvSB=true
Soap is alkali so it is softening the whiskers. Without lather, you need to soak your whiskers a lot longer or you will experience pulling and tugging. When it comes to protecting your skin, even oil is better than lather. Lather is not a particular good protector, but surely it does protect and together with the beard softening properties it gives the edge over alternatives.
Maybe in the USA? But in Europe, commercially available shaving soap was already known in 1760. Probably before as well, though many soaps were locally produced then, but I have no earlier newspaper ads to research that.
When I was young and foolish I tried dry shaving. I took nearly a week for my face to forgive me and heal.
I use only oil, at this point, and have no problem telling where I've shaved. I re-apply a bit between passes.