THE HISTORY OF PAWN SHOPS Presented by Chapes-JPL
Introduction THE GOOD OLE PAWN SHOP
WHERE DID IT COME FROM?
Pawnshops have become great places to sell items for quick cash or to buy items at a bargain price. Pawnshops are a staple of American culture and for that matter, the culture of the world. From northwest America to southeast China, the now famous pawnbroker’s symbol (three spheres hanging from a bar) can be seen displayed prominently in front of shops that advertise deals on jewelry, electronics, tools and more.
Nowadays, most people give little thought to the history of pawn shops. It’s almost as if we all woke up one day and noticed a pawnshop around the corner and no one cared to ask where it came from or why it was there. Most of us have just continued to enjoy its convenience and affordability. In this presentation, we’ll take a look at the history of pawn broking and try to answer the aforementioned questions above.
HELLO! I am Lee Benhayon
I will be your presenter for today. You can find me at info@chapesjpl.com
Where it all started Let’s start with the inventors.
The inventors of pawn broking ✘ Pawn broking as we know it today was started in the unlikeliest of places, Buddhist monasteries. ✘ Over 3000 years ago, Buddhist monks introduced pawn broking in ancient China as a means to aid peasants financially.
✘ The monks would grant loans to peasants on the condition that they would trade something of value, since it was forbidden to charge interest on money, a concept known at the time as usury.
The spread of pawn shops in China ✘As the popularity of pawn shops grew within impoverished communities, new lenders arose to meet the demand. Buddhist monasteries began partnering with wealthy layman to expand the practice throughout China.
Early Chinese pawn shop
Where it went Let’s continue with the adopters.
Pawn shops in Greece and Rome ✘ Eventually, pawn shops began spawning throughout Greece and Rome as the business model gained traction.
✘ Under Roman law, certain items such as clothing, tillage equipment and furniture could not be pledged as collateral.
✘ However, the limitations of usury were now removed. Pawn broking became so lucrative that regulation became a necessity.
✘ Later on, the Catholic Church reimposed restrictions on the amount of interest that could be charged on a loan.
The Roman senate that regualted pawn shops
The evolution of the pawn shop ✘ During medieval Europe, the pledge system was adopted with its laws and principles intact. Initially, pawn brokers abided by these laws and operated purely off goodwill. ✘ Soon, the expenses of running a pawn shop began to be a burden.
✘ It was no longer feasible to help the poor without hurting one’s own financial stability. ✘ The Catholic Church was therefore forced to allow pawnbrokers to charge interest on loans to cover their expenses.
The medieval poor fishing for food
The controversy of charging interest ✘ The actions of the Catholic Church caused a great uproar within the community as charging interest was practically viewed as a sin.
✘ The pope at the time, Pope Leo X, quelled such debates as he announced that pawnshops were to be considered a lawful and valuable institution to the community. He forbade anyone to differ with the threat of excommunication.
Pope Leo X
Unwarranted Stigma ✘ The controversy of charging interest is precisely where pawn broking took on a negative connotation. Although monarchs like King Edward III and Queen Isabella utilized the services of pawnbrokers, most of the common people still viewed them as usurers.
Pawn broking today ✘ In modern times, pawn broking has lost some of the negative stigma it has acquired throughout history. In the United States, pawn shops have to abide by strict regulations on interest rates and business practices.
✘ They’ve become the go-to source for millions of people who are strapped for cash and for those who are looking to score a nice bargain. Pawnbrokers have and will continue to flourish around the world as one of the oldest known professions that have withstood the test of time.
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References History of pawnbroking. (2017, July 18). Retrieved August 24, 2017, from https://en.wikipedia.org/wiki/History_of_pawnbroking Pawning Through the Ages. (n.d.). Retrieved August 24, 2017, from http://www.history.com/shows/pawn-stars/articles/pawning-through-the-ages The History Of Pawnbroking. (n.d.). Retrieved August 24, 2017, from http://www.thenpa.com/About-Pawnbroking/The-History-Of-Pawnbroking.aspx