Pawn Shop St Louis MO – History of Pawn Shops

by | May 7, 2012 | Jewelry

We have all heard about them. If you take a walk down your street, you will probably come across a pawn shop St Louis MO. But have you ever wondered how it all begun? Who came up with the idea? How does someone decide to set up a Pawn Shop and make a profit from it?

The word pawn is derived from the Latin word Patinum. Patinum can be translated to mean clothing. The shops were named thus as people often traded their clothing to get soft loans for immediate needs or projects.

Many people are surprised to learn that pawn broking is an ancient form of business. So ancient that it can be traced back to over 3000 years ago. The pawnshops in early China can be traced back to between 2000 and 3000 years ago. The government of Imperial China regulated the businesses very strictly to ensure that the poor were not oppressed by the wealthier in society. Borrowers were allowed up to three years to redeem the property that they exchanged for the loan. The pawn shops in this era were not allowed to charge an interest above 3% per annum.

Pawn shops developed throughout the world with the aim of assisting the poor to get funding for projects and other immediate needs. A pawn shop was often seen as a beacon of hope. The Franciscans were even permitted to begin this practice as an aid to the poor despite the strict prohibitions in the Early Church against usury. Many scholars today question how much the friars profited from this ancient practice.

In the last century, various other forms of getting credit and finance have been introduced including loans from financial institutions and credit unions. The pawn shop business dwindled somewhat between the 1930s and 1970s as a result of these other credit options. However, the industry has since recovered and has seen growth in the last few decades.

You will find that a pawn shop St Louis MO offers more accessible loans than banks and credit unions. Many people prefer to visit a pawn shop since no questions are asked. All you need is collateral to guarantee the loan you are taking. Although the media industry has painted a dark picture of these business transactions, they are quite legitimate. In fact, the local police are provided with a receipt confirming that the transaction was made.

Pawnshops are a form of ancient business and are assisting many people get loans for immediate needs. All they have to do is provide the broker with collateral such as jewelry. They offer a fast solution to financial dilemmas when other credit options would take a longer period to settle the same issue.

Pawn Shop St Louis MO – Stone Ledge Gun and Pawn is a full-fledged gun and pawn shop in St Louis, MO, specializing in the buying and selling of new and used guns. Learn more about how you can get finances from a pawn shop.


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