How well do you know your friendly neighborhood pawnshops? Sure, you know their faces, their names, and maybe some of them even have kids in the same school you graduated from or the school of your children. But do you know anything about the origin of their industry, or the history of their business?
Pawnshops and pawn brokers have been in existence since time immemorial. There have been records of pawn-related activities in ancient histories. Particularly, in China, pawn shops date back to 3000 years ago or 1000 BC. Usually heavily regulated by the government, pawnshops have flourished from country to country as the years passed.
Different societies have different histories but all the same, each society have their own colorful history of finances, lenders, and by consequence, pawn brokers. In China, the practice of obtaining loans against property like land or other valuables date back to the Han dynasty, while others suggest that it can even go beyond before that time. Governments then already recognize pawning, with usury regulated at an interest rate of 3%.
In the Western world, pawning has been part of history as well. In several books within the Bible, numerous mentions of pawning can be seen. Through Sodom and Gomorrah to Jesus overturning the tables of pawn brokers and moneychangers in front of the temple, the context precludes that there was a flourishing pawning industry even during biblical times.
This existing industry was transported to the continent proper through numerous conquests and re-conquests of numerous warring empires. TheRomans, expanding ever, transported ideas which flourished within their empire and spread it through all their conquered provinces, with it, pawning and finances. With the emergence of Catholicism during the reign of Constantine I, the church was formed and henceforth, also became involved with pawning.
Several orders within the church participated in lending, finances, and pawning. The Order of St. Francis participated as pawn brokers during this period, assisting the poor through their industry. However, with the prohibition of the Church from earning money without actually working, other personages from other cultures emerged to take advantage of the vacuum.
From this emerge Jews who were explicitly outside the prohibition since they were technically heretics in the eyes of the Church. Several Jewish companies then emerge to establish different pawn shops, servicing the Christian masses. Vice versa, there also emerge Christian pawn brokers who service the Jewish population. Since technically, each religion is deemed heretic by another, the prohibition from usury was not applicable.
From this period up to the end of the Medieval Age, the pawning industry flourished. Growing from simply retail services and to the masses, pawn brokers began to service the upper class, and the eventually, even the royalty, and the Pope. Pope Leo X, for example, notoriously a big spender, had to pawn several valuables owned by the church and personally in order to finance his lavish life and finances. The same Pope eventually legalized and supported pawning and pawn brokers by 1515.
Eventually, private bankers like the Medicis of Florence and the English Lombards emerged through years of service, counting royalty and the Papacy as their clients. It was also well-known that during the Spanish monarchy era, even the Queen Isabella of Spain pawned royal jewels in order to finance the voyages of Christopher Columbus.
Such houses like the Medicis and the English Lombards grew so powerful during the Medieval period that they were able to influence and dominate their local political scene. Nonetheless, there was still some antipathy against pawn brokers particularly from those who viewed them as money-hungry. This perspective has been carried over from ancient times when the Church decreed that pawn brokers are sinners – owing to their ability to create money from what constitutes as non-industry.
Fast forward to the near past. Pawn brokers have been an established part of society. They provide the basic service of enabling people to finance their needs by depositing items of value. In the years after World War II alone, there was an estimated 5000 pawnshops in the United Kingdom alone.
In the past few years, the industry itself has also relatively shifted. With electronic products being valued and appraised for huge amounts, pawnbrokers have begun to include electronics, computers, mobile phones, and even gardening/farming equipment to acceptable items for pawnshops.
The newest development in the industry, however, is the emergence of online pawn shops which cater to anyone who can access the net and meet their minimal requirements. Typically, online pawn shops use the growing efficiency of mail carriers in order to service prospective borrowers.
These are just some of the simpler facts regarding pawn shops. Just like any other industry, the pawning industry has had its experience of upheavals and problems through the years. However, it has remained strong and has been providing valuable service to anyone who needs it.
Pawnshops and pawn brokers have been in existence since time immemorial. There have been records of pawn-related activities in ancient histories. Particularly, in China, pawn shops date back to 3000 years ago or 1000 BC. Usually heavily regulated by the government, pawnshops have flourished from country to country as the years passed.
Different societies have different histories but all the same, each society have their own colorful history of finances, lenders, and by consequence, pawn brokers. In China, the practice of obtaining loans against property like land or other valuables date back to the Han dynasty, while others suggest that it can even go beyond before that time. Governments then already recognize pawning, with usury regulated at an interest rate of 3%.
In the Western world, pawning has been part of history as well. In several books within the Bible, numerous mentions of pawning can be seen. Through Sodom and Gomorrah to Jesus overturning the tables of pawn brokers and moneychangers in front of the temple, the context precludes that there was a flourishing pawning industry even during biblical times.
This existing industry was transported to the continent proper through numerous conquests and re-conquests of numerous warring empires. TheRomans, expanding ever, transported ideas which flourished within their empire and spread it through all their conquered provinces, with it, pawning and finances. With the emergence of Catholicism during the reign of Constantine I, the church was formed and henceforth, also became involved with pawning.
Several orders within the church participated in lending, finances, and pawning. The Order of St. Francis participated as pawn brokers during this period, assisting the poor through their industry. However, with the prohibition of the Church from earning money without actually working, other personages from other cultures emerged to take advantage of the vacuum.
From this emerge Jews who were explicitly outside the prohibition since they were technically heretics in the eyes of the Church. Several Jewish companies then emerge to establish different pawn shops, servicing the Christian masses. Vice versa, there also emerge Christian pawn brokers who service the Jewish population. Since technically, each religion is deemed heretic by another, the prohibition from usury was not applicable.
From this period up to the end of the Medieval Age, the pawning industry flourished. Growing from simply retail services and to the masses, pawn brokers began to service the upper class, and the eventually, even the royalty, and the Pope. Pope Leo X, for example, notoriously a big spender, had to pawn several valuables owned by the church and personally in order to finance his lavish life and finances. The same Pope eventually legalized and supported pawning and pawn brokers by 1515.
Eventually, private bankers like the Medicis of Florence and the English Lombards emerged through years of service, counting royalty and the Papacy as their clients. It was also well-known that during the Spanish monarchy era, even the Queen Isabella of Spain pawned royal jewels in order to finance the voyages of Christopher Columbus.
Such houses like the Medicis and the English Lombards grew so powerful during the Medieval period that they were able to influence and dominate their local political scene. Nonetheless, there was still some antipathy against pawn brokers particularly from those who viewed them as money-hungry. This perspective has been carried over from ancient times when the Church decreed that pawn brokers are sinners – owing to their ability to create money from what constitutes as non-industry.
Fast forward to the near past. Pawn brokers have been an established part of society. They provide the basic service of enabling people to finance their needs by depositing items of value. In the years after World War II alone, there was an estimated 5000 pawnshops in the United Kingdom alone.
In the past few years, the industry itself has also relatively shifted. With electronic products being valued and appraised for huge amounts, pawnbrokers have begun to include electronics, computers, mobile phones, and even gardening/farming equipment to acceptable items for pawnshops.
The newest development in the industry, however, is the emergence of online pawn shops which cater to anyone who can access the net and meet their minimal requirements. Typically, online pawn shops use the growing efficiency of mail carriers in order to service prospective borrowers.
These are just some of the simpler facts regarding pawn shops. Just like any other industry, the pawning industry has had its experience of upheavals and problems through the years. However, it has remained strong and has been providing valuable service to anyone who needs it.
