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 Lombard operated pawnshops throughout Europe. Legend contends that they even counted royalty, such as King Edward III of England, among their clientele during the 14th century. The symbol of the Lombards' operations was the three gold balls that still remain the trademark.

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

Historical Facts and Legends

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."

There are several versions of this famous nursey rhyme. We present our favorite for your enjoyment.

The monkey chased the weasel,
The monkey thought 'twas all in fun
Pop! Goes the weasel.

A penny for a spool of thread
A penny for a needle,
That's the way the money goes,
Pop! Goes the weasel.

A half a pound of tupenny rice,
A half a pound of treacle.
Mix it up and make it nice,
Pop! Goes the weasel.

Up and down the London road,
In and out of the Eagle,
That's the way the money goes,
Pop! Goes the weasel.

I've no time to plead and pine,
I've no time to wheedle,
Kiss me quick and then I'm gone
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 families in Italy along with the Lombards in England were moneylenders 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.

Throughout history, pawnbrokers have been helping people. The Bible offers references to pawnbroking, and in Deuteronomy 24:6-13 it states: "No man shall take the nether or the upper millstone to pledge, for he taketh a man's life to pledge". What this means is: you should not take as a pledge anything a man needs to make a living. The same chapter also says: "Thou shalt not go into his house to fetch the pledge. Thou shalt stand abroad and the man to whom thou dost lend shall bring the pledge…unto thee." Interestingly, often the debtor's children could be used as a pledge (2 Kings,4:1-7). Also in Deuteronomy 23:21 the people were told not to take interest from their own countrymen - only from foreigners.

According to ancient Mesopotamian law, the rates of interest charged - even in those days - were 20% for silver, and 33% for grain.

The moneychangers of Jesus' time served two purposes. First they exchanged Antiochian Tetradrachms for the local currency (shekels), exacting a fee between 4% and 8% for their services. Second, they functioned as bankers and lenders. In the well-known Gospel story, Jesus overturned their tables because he didn't feel the gates of the Temple were the right place to be conducting that business. In fact, such moneychangers set up shop there as a service, to deal with people who came to pay their half-shekel Temple tax. The rabbis insisted it be paid in silver didrachms of Tyre, which nobody carried.

More on the origin of the three ball symbol and Saint Nicholas, the Patron Saint of Pawnbrokers

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