The 16:9 ratio is the standard set for HDTV after an international debate among professionals in the industry; I believe the final standard was promulgated by the Society of Motion Picture and Television Engineers ("SMPTE"), but if I'm wrong about that, someone will correct me.
A key factor underlying the decision was the recognition that films come in many different shapes, so that no matter what standard was chosen, one size could not fit all.
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why i have bars on 1.85:1
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They should be very tiny, and on most direct view and rear-projection TVs, the bars will be hidden by overscan. Are you using a front projector?
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I'm new to HT and I had thought a 16x9 would be a fullscreen experience with no bars.
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A misconception so common that it has its own chapter in our Beginner's Primer and FAQ. Use the link in my signature.
M.