As mankind's oldest financial institution, pawnbroking carries on a tradition with a rich history. Pawnbroking can be traced back at least 3,000 years to ancient China, and has been found in the earliest written histories of Greek and Roman civilizations.

During the Middle Ages, certain usury laws imposed by the Church prohibited the charging of interest on loans, thus limiting pawnbroking to people who had religious beliefs outside of the Church. Out of economic necessity, and because of problems in the banking system, pawnshops made a resurgence in later years. The House of The Lombards operated pawnshops throughout Europe. They even counted royalty, such as King Edward III of England, among their clientele during the 14th century. The symbol of the Lombards' operations were the three gold balls that still remain the trademark of pawnshops.

Pawnbrokers, also known as collateral loan brokers, make loans based purely on the intrinsic value of the collateral. Checking the customer's credit history is not necessary because only the value of the item being pawned is considered. If the loan, or at least the interest, is not paid off during the specified term (usually three or four months), the item is forfeited and may be resold by the broker.

A typical transaction begins with a potential borrower coming into a pawnshop with the item he or she wants to pledge. The pawnbroker then determines how much to loan the patron for the item. Loans are paid out at a rate of about one-third to one-half of the price the broker can expect to receive for the sale of a good during the worst of times. This assures that a profit will be made.

Pawning has long been a source of capital for people in times of need, as well as a means of financing business ventures.

Today, statutory regulations of banking and finance are based on the legal foundation established by pawnbrokers. Many of the first leaders in the banking industry had roots in pawnbroking. As was the case 3,000 years ago, pawnshops continue to be a source of convenient credit for individuals in need of a short-term loan.

The Numbers:
	Membership in the National Pawnbrokers Association has in risen from 50
	in 1988 to more than 3000 today.
	In 1911, there were 1,976 licensed pawnbrokers in the country, or about
	one for every 45,700 citizens.
	In 1988 there were approximately 6,900 pawnshops in the United States,
	one for every two commercial banks.
	There are between 12,000 and 14,000 pawnshops in operation throughout
	the United States today.
	Pawnshops made about 35 million loans in 1988.
	Between 70 and 80% of all items pawned are redeemed.
	As many as 10 percent of the adult population are served by pawnshops
	each year.
	According to an article entitled "Cash Customers" in Forbes Magazine
	(May 1993), 25 million households representing more than 75 million people do not have a bank account. People without bank accounts would find it extremely difficult, and most likely impossible, to obtain a credit card or obtain a loan from any other legitimate source than a pawnbroker.

The Record:
	Formerly a male dominated industry, today women are also making
	their mark as pawnbrokers.
	Pawnshop clientele are represented in a range of ages
	(must be 18 or older), races and genders with male and female customers being about equal. As the public becomes more educated about the types of services pawnbrokers provide, pawnshops are serving a wider and more diverse clientele.
	All items received by a pawnbroker must to be listed with the city
	and/or state's police department, therefore reducing the chance of a consumer receiving stolen property.
	The pawn industry is one of the most regulated in the country. Most
	regulation has been initiated, sponsored and supported by pawnbrokers. Regulatory agencies include the Office of Consumer Credit and Law Enforcement on a local and national level.
	Pawnbrokers have state, regional and national industry associations
	which work at self-policing the industry. In the case of public companies, the Federal Securities and Exchange Commission oversee their operations.
	Pawnshops serve as a source of credit to millions of Americans, providing
	average small secured loans ($50 to $100) for a brief time period (two to four months).
Around the World:
	Free enterprise in the form of pawnbroking has reappeared in Russia and
	communist states such as China to fill the gaps of their national banking system.
Historical Facts:
	The Nursery Rhyme "Pop Goes The Weasel" refers to pawning. A weasel
	is a shoemaker's tool and to "pop" is to pawn. "That,s the way the money goes... Pop goes the weasel."
	Queen Isabella of Spain pawned the crown jewels to finance Columbus'
	voyage to America.
	The word pawn originates from the Latin word "patinum" which means
	cloth or clothing. The French word "pan" refers to a skirt or blouse. In the early centuries, the principle assets people had were their clothes and borrowed money by pawning their clothing.
	The universal symbol of pawnbroking is three gold balls and is one of the
	most easily recognized in the world. The Medici family in Italy along with the Lombards in England were money lenders in Europe. Legend has it that one of the Medicis in the employ of Emperor Charles The Great fought a giant and slew him with three sacks of rocks. The three balls or globes later became part of their family crest, and ultimately, the sign of pawnbroking.
Miscellaneous Facts:
	Many pawnshops around the country cater to the likes of actors,
	producers and directors.
	High quality merchandise such as gold and diamond jewelry, VCRs and
	musical instruments can be found in pawnshops for about half the price compared with retail stores. The 1980s provided a boom period for pawnbroking, with new shops opening in all parts of the country. This upturn, in part, is due to the increase in the number of Americans excluded from mainstream credit markets and small bank closings and in significant part to the upgrading by the industry of the products and service offered to the public.

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