The history of pawn shops
In the United States, the number of pawn shops grew exponentially because of the vast growth of the domestic manufacturing sector, which mostly paid their workforce low wages. Pawn shops because essential for those workers because they helped form a crucial bridge between paydays and loaning cash for basic necessities like food and shelter on the security of their personal possessions. Loans like this also assisted business owners to meet payroll and the rich to finance their vacations. They became known as the people’s bank.
Back in the early 1800’s, pawn shops because so essential to so many people that there was one item in pawn for every man, woman and child living in New York City at the time.
Here’s an interesting list we found from the only existing business records of a 19th century pawnshop in New York City on August 21, 1838, a typical day:
- Cloak $ .75
- Two coats and a razor $3.50
- Coat $4.00
- Accordion $2.00
- Pistol $ .50
- Blanket, coat and book $ .75
- Apron $ .06
- Gown $ .18 3/4
- Three books $2.37 1/2
- Pair of spectacles $ .62 1/2
- Vest $ .25
- Tablespoon $1.50
- Rasp. $ .12 1/2
- Two sheets and a petticoat $ .50
- Cloak and four books $1.00
- Silver watch with broken hands $2.00
- Lever watch $5.00
- Eyeglass $ .25
- Saw $ .37 1/2
- Shawl $ .25
- Shirt $ .50
- Broach $ .37 1/2
- Gold watch chain and key $18.00
- Fur $4.00
- Quilt $3.00
- Eight collars $ .37 1/2
- Pair of lamps $ .12
- Violin $4.00
- Pair of pants $1.00
- Box of jewelry $1.00
- Gown and cape $ .75
- Jacket, pants and vest $4.00
- Sheet $ .18 3/4
- Necklace $1.00
- Music box $1.00
- Handkerchief $ .12 1/2
- Coffee box $30.00
- Table cover $1.00
- Umbrella $ .50
- Silver medal $2.50
This list provides a great deal of variety in things that were pawned back in the early 1800’s, however, TODAYS items are similar in nature. For example, yesterday’s violin, is todays guitar; yesterday’s music box, is todays CD player or iPod; yesterday’s pocket watch is today’s wrist watch, etc.
Pawn shops remain an important economic function by providing collateralized, short-
term loans. They have been important in America for over two centuries.
At Traders Loan and Jewelry, in Reseda, CA, ninety-five percent of people redeem the items they have in pawn. Loan are non-recourse. We do not report to any credit agencies. The loans we give are based on the item your collateralizing, not the person!
Source: Bloomberg