NOTE: Well, gpawn has been dreading this day. Yup, staring at a blank computer screen wondering how to send more thought provoking and potentially scandalous blog postings out into “Cyberspace” and coming up empty. Well, the thought that has always given gpawn comfort is knowing that on the fateful day when the “Blank computer screen episode” arrives, he can always fall back on the obligatory “History of Pawn Shops Post”. For all you talented and gifted writers out there who always proclaim, “Writer’s block? Nooooooo, not me…never…” Uh, yeah, gpawn totally believes you. Okay, step # 1…now you all know gpawn loves WIKIPEDIA for stuff like this so we’ll base this “History of Pawn Shops Post” on what has been compiled by this ultra-cool source of Internet information. (Edited for length and relevance) It should be noted that gpawn’s comments are in BOLD:
A pawnbroker is an individual or business (pawnshop or pawn shop) that offers secured loans to people, with items of personal property used as collateral. The word pawn is derived from the Latin pignus, for pledge, and the items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral.
Comments by gpawn: Interesting, didn’t know about the Latin “pignus”.
If an item is pawned for a loan, within a certain contractual period of time the pawner may purchase it back for the amount of the loan plus some agreed-upon amount for interest. The amount of time, and rate of interest, is governed by law or by the pawnbroker’s policies. If the loan is not paid (or extended, if applicable) within the time period, the pawned item will be offered for sale by the pawnbroker/secondhand dealer.
Comments by gpawn: Wow, I’ve been fortunate to be here at Glendale Pawn and Jewelry for awhile now and I’ve never heard any reference of “Pawner”…but of course gpawn is usually confined to a dark room in the back of the building and seldom allowed around “Civilized society”.
In the west, pawnbroking existed in the Ancient Greek and Roman Empires. Most contemporary Western law on the subject is derived from the Roman jurisprudence. As the empire spread its culture, pawnbroking went with it. Likewise, in the East, the business model existed in China 3000 years ago no different than today, through the ages strictly regulated by Imperial or other authorities.
In spite of early Roman Catholic Church prohibitions against charging interest on loans, there is some evidence that the Franciscans were permitted to begin the practice as an aid to the poor. Pawnbrokerage arrived in England with William the Conqueror, but known by the Italian name, Lombard. In 1338, Edward III pawned his jewels to raise money for his war with France. King Henry V did much the same in 1415. The Lombards were not a popular class, and Henry VII harried them a good deal. In the very first year of James I Stuart an Act against Brokers was passed and remained on the statute-book until Queen Victoria had been on the throne thirty-five years. It is also known that Queen Isabella of Spain pawned her jewelry in order to send Christopher Columbus out to what he believed was the Indies.
Carl d´Unker-The Pawn Shop (1860)
(It should be noted that Glendale Pawn and Jewelry is much cleaner and has better lighting…pretty sure our staff is more cheerful too)
A pawnbroker can also be a charity. The Monte di Pietà movement was begun in Perugia, Italy, in 1450 by Barnaba Manassei, a Franciscan monk. It had the aim of providing financial assistance to people in the form of no-interest loans, secured with pawned items. Instead of interest, borrowers were urged to make donations to the Church. It spread first through Italy then in other parts of Europe. The first Monte de Piedad organization in Spain was founded in Madrid, and from there the idea was transferred to New Spain by Pedro Romero de Terreros, the Count of Santa Maria de Regla and Knight of Calatrava. The Nacional Monte de Piedad is a charitable institution and pawn shop whose main office is located just off the Zocalo, or main plaza of Mexico City. It was established between 1774 and 1777 by Pedro Romero de Terreros as part of a movement to provide interest-free or low-interest loans to the poor. It was recognized as a national charity in 1927 by the Mexican government. Today it is a fast-growing institution with over 152 branches all over Mexico and with plans to open a branch in every Mexican city.
Comments by gpawn: I think it’s interesting to note the connection between pawnbrokers and charity. It’s a tradition that continues to this day. It’s also interesting to note that Glendale Pawn and Jewelry believes strongly in giving back to the community through generous donations to several charitable organizations.
The pawnbrokers’ symbol is three spheres suspended from a bar. The three sphere symbol is attributed to the Medici family of Florence, Italy, owing to its symbolic meaning of Lombard. This refers to the Italian province of Lombardy, where pawn shop banking originated under the name of Lombard banking. The three golden spheres were originally the symbol which medieval Lombard merchants hung in front of their houses, and not the arms of the Medici family. It has been conjectured that the golden spheres were originally three flat yellow effigies of byzants, or gold coins, laid heraldically upon a sable field, but that they were converted into spheres to better attract attention.
Most European towns called the pawn shop the “Lombard”. The House of Lombard was a banking family in medieval London, England. According to legend, a Medici employed by Charlemagne slew a giant using three bags of rocks.
(Yeah, that’s the ticket…anybody know where we can find someone similar…with a bad attitude?)
Comments by gpawn: “Don’t mess with us…we have a bag with three rocks!”, now that is definitely a fearsome thing. Okay, all we need is a giant, a bag of rocks and a Glendale Pawn and Jewelry staff member to test this theory. If you’re loyal “Blog – View” reader, a certified giant and you want to help us test the validity of a famous legend, please send your contact info to: pawnshopstories@arizonapawnshops.com
The practice of Lombard credit is still commonly used in central banking, where central banks lend against marketable securities, such as government bonds. Modern repo (repurchase-sale transactions) are also forms of Lombard lending: one bank sells marketable securities to another (at a discount), with an agreement to repurchase the securities (typically at par) in a fixed period of time. Although the legal documentation of the transaction is that of a sale and subsequent repurchase, the substance of the transaction is a secured loan (and under most accounting standards, will be treated as a loan). Pawn shops in many countries and languages are often still referred to as Lombards.
Comments by gpawn: Wow! Now THAT’S a major contribution to world history!
The three ball symbol became the family crest. Since the Medicis were so successful in the financial, banking, and moneylending industries, other families also adopted the symbol. Throughout the Middle Ages, coats of arms bore three balls, orbs, plates, discs, coins and more as symbols of monetary success.
Saint Nicholas is the patron saint of pawnbrokers. The symbol has also been attributed to the story of Nicholas giving a poor man’s three daughters each a bag of gold so they could get married.
Comments by gpawn: …and thus began the lengthy history of pawnbrokers helping people get married. By the way, we have some amazing deals on wedding and engagement rings on our E-Bay online clearance store…check it out by clicking –HERE–.
SUMMARY: So what have we learned today loyal readers? Well, we found out that pawnshops and the principle of secured lending have been around for a LONG time. The connection between pawnshops and charitable giving has survived for many centuries and it may or may not be possible to whoop a giant with a bag of rocks…but we won’t know until we conduct the experiment.
LATE BREAKING NEWS! The management of Glendale Pawn and Jewelry has vetoed gpawn’s suggested, “Three rocks in a bag vs. big angry giant” experiment…okay, they care about us…oh well, we have some time until the next post to come up with something.
Did you know that, “We’re glad you’re here”? Well, we certainly are!
Gpawn’s PICK OF THE POST:
“These are GREAT, AFFORDABLE FASHION RINGS! Check em’ out!
