 Rich history
The online version of
the Encyclopaedia Britannica (britannica.com) defines "pawnbroking"
as the business of advancing loans to customers who have pledged
household goods or personal effects as security on the loans.
A pawnshop is a place where the transactions take place and the goods are
securely stored.
A pawnbroker lends money, primarily to people without a credit standing,
by "buying" an article of value such as a Watch or VCR. The
pawnbroker then agrees to sell the item back at the original loan
amount plus an agreed upon interest rate within a specified time. If the
article is not redeemed in the specified time, the pawnbroker then
is free to offer it for sale to the public.
Brief History of Pawnbroking
Pawnbroking has been in existence since the 13th Century when Francescan
monks started it to help the poor. Queen Isabella was known to have
pawned her jewels so Christopher Columbus had the funds to go in
search of the Americas.
With reference to England it was in the mid-18th Century when bills
were passed through Parliament regulating pawnbrokers i.e. proposing
licensing and a levy of 1/5th of all interest charged going to
hospitals and workhouses. At about this time three balls, either
golden or blue became the sign of the pawnbroker - Blue was in fact
a more fitting colour than gold, since the sign probably came from
the coat of arms of the Medicis, from whose territory the Lombard
Goldsmiths (the first registered money lenders) originally came.
Between the mid-18th and l9th Century, pawnbrokers expanded
throughout the country and further acts were introduced to regulate this
expansion. By 1851 there were about 4500 pawnbroking establishments
mainly based in industrial working class areas. At the turn of the
century most pawnbrokers were open until mid-night on Saturdays
taking in all manner of pledges from linen to furniture, blankets
and clothes. These were generally put in store rooms above the
premises where people slept to protect the goods.
During the period of the two World wars, it was not exceptional for
industrial pawnbrokers (assorted general household goods, tools and
machinery) to acquire 2000 - 3000 pledges per week. By the 1950's the
number of pledges decreased to about 300 a week, mainly due
to the advent of social security.
Trade for the pawnbrokers in the 60's and 70's was very slow and to
make matters worse a series of complex legal regulations made
pawnbroking an unattractive form of money lending. The demise of the
pawnbroker altogether was a real possibility; the government changed
this via pressure from the National Pawnbrokers Association and in
1974 introduced the Credit Consumer Act which simplified pawnbroking
into a clear and concise form of money lending.
By the late 70's and early 80's pawnbroking had started to improve
and during the Thatcher years it boomed. People needed money to make
money and during times such as major share issues the pawnbroker saw
a large increase in business. 'The boom years brought about an
unprecedented amount of credit. In the late 80's the crash put a
sudden stop on the 'never ending' credit lines and as a result
borrowing money was suddenly very difficult.
From the start of the recession, people in general have found living
and making money a lot harder; as credit lines have been shut down
and bank charges increased dramatically, they have turned to the
pawnbroker as a quick and simple form of credit using the articles
they acquired during the boom years as collateral.
At
The Henley's Trading Post you can get either collateral loans or
sell your slightly used items outright. Here you will enjoy a
substantial savings over retail prices.
For
more information please call (604) 859-2518
or fax us at (604) 859-2508
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