I cannot recall the last time I saw a pawnshop, although I realize that they are still around. However, there was a time when you could find at least one in every neighborhood.
Pawnshops were places where you could take your valuables and exchange them for cash. These were suppose to be short-term financial transactions; you could retrieve your item and have your money returned within a period of time. At these pawnshops, you could also browse and purchase items that had never been retrieved at fairly reasonable prices. There were many kinds of things to see and purchase at a pawnshop if you so desired. Did you patronize pawnshops, back in the day?
Let us assume you were not around during the “heyday” of the pawnshop and have little or no understanding of the pawnshop concept. The pawnshop process is quite simple: someone will bring in an item and use it as collateral to obtain a relatively small cash loan. The customer usually receives approximately 20 or 25 percent of the resale value of the item being pawned. A fixed time limit is established for a customer to return to the pawnshop, which is usually a few months, to retrieve the item. Of course, the customer must pay interest charges for the time he has the money obtained for the merchandise. While interest rates are set by the state, these rates can be stiff. In some states, the interest rate can be 4 percent a month which amounts to 48 percent if the item is pawned for 12 months.
Interestingly, Pawnshops Today, which claims to be “The National Voice of the Pawn Industry,” claims the redemption rate, the rate that people return to pay off their loans and reclaim their merchandise, is about 80 percent. This is indeed surprising and I wonder how these rates apply to pawnshops in Black communities. Naturally, if one fails to return during the fixed time period or fails to pay the interest rate, the item becomes the property of the pawnshop. The pawnshop can then sell the merchandise. As you can readily see, pawnbrokers can get their merchandise for resale cheap. By the time the item is ultimately resold, a handsome profit is made by the pawnshop. At the same time, customers can obtain merchandise at prices well below the market value. For a number of people, the pawnshop was a key piece in the survival of their families, back in the day.
The mention of pawnshop immediately brings unkind looks and, quite often, unpleasant comments about the practice of obtaining money by using your possessions for collateral. Most people do not realize that contrary to what we have been taught, it may be the oldest profession known to man and not that “other thing.” Based on information gleaned from an Internet search, Chinese records reveal that the practice of securing loans on property goes back to the dawn of the Western Han Dynasty in 206 BC Back then, it is reported, borrowers could take up to three years to pay off their loans at far more moderate rates than we see today.
Contrary to what many believe, going to a pawnshop to scrape up some quick cash was not something reserved for the poor. A lot of wealthy people turned to pawnbroking for survival. There are reports that Pope Leo X had to pawn his own palace furniture and silver to cover his luxurious lifestyle and love of the arts. Another Internet site indicates that in 1338, King Edward II hocked his jewels to raise monies for the English military in what is known as the Hundred Years’ War. So, if you are reluctant to acknowledge your experiences with pawnbrokers today and in particular in the past, you were in good company. Furthermore, during the days when money was hard to come by for Black Americans, the pawnshop provided an opportunity for us to secure cash.
An understanding of race relations, and an acknowledgement of the difficulties we faced in the past, allows us to understand how Black folk would turn to pawnshops for monies when needed. Given our experiences in this day and age, you must know that it was very difficult in the past. Thus, for many Blacks it was the pawnshop that provided the loans that would carry folks until they got back on their feet. I suspect that a number of us survived our college years with the transactions conducted at the pawnshop, back in the day.
Never having an experience with a pawnshop, I cannot share any real-life experiences. I do know that the familiar symbol of three gold balls suspended from a bar designates a pawnshop. In seeking the experiences of friends, it was obvious that several had some direct contact with pawnbrokers but were reluctant to let me know that they ventured into such an experience. On the other hand, a few spoke freely, with absolutely no shame.
One colleague vividly recalls a childhood experience observing his grandfather’s dealings with a neighborhood pawnshop. His grandfather took his grandmother’s silverware and punch bowl set to the pawnshop to secure money intending to return prior to the Christmas holiday to retrieve his merchandise. Yes, he had to pay the interest and stay within the given time frame to recover his silverware and punch bowl set. His grandmother knew what was going on but everyone was on board with this relationship with the pawnbroker as it provided money for much-needed items when money was scarce. Her silverware and punch bowl set was pawned every six months. If for some reason the usual pawned items were in “hock” prior to paying off the loan and interest and additional monies were needed, my colleague’s grandfather pulled out his shotgun to use as collateral for a loan. Shotguns and pistols were items quite ripe to pawn, back in the day.
Some of our folk try to present themselves as never having been involved in stuff that gives a “ghetto-like” impression. Thus, in asking another colleague about his experiences with pawnshops, he frowned and protested that he had absolutely no experience with such venues. Experience teaches us that you must be careful about what you say. Often times, as in this case, a friend comes along and puts “your business in the streets.”
From the mouth of one of his friends from the past, I learned that my Princeton-educated co-worker asked his friend to accompany him to the pawnshop, as he was too young to transact pawnshop-related business. The young man in question pawned an upright bass fiddle. Of significance, I have never heard this co-worker talk about his musical ability; thus, I wonder about the origin of this object. I hope that how it was obtained is not tied to the increased rules and regulations placed on pawnshops to prohibit the selling of items that are the opposite of cold.
You should know that more than “big-ticket” items are sold in pawnshops. Here are samples of items sold in many pawnshops over the years: coats, leather jackets, blankets, gowns, books, clocks, eyeglasses, clothing, jewelry, bicycles, lamps, bed spreads and the list goes on. Almost anything can be pawned but low-end items bring little money. There are those who have pawned an engagement or wedding ring in the past after the relationship ends with no intent of reclaiming it. While pawnshops are patronized by many for good merchandise at relatively low prices, I trust that no one reading this column gave their loved one an engagement or wedding band that came from a pawnshop only to learn that it contained someone else’s initials.
Lately, cable television has brought the pawnshop back to life. Some of you watch History Channel’s “Pawn Stars” and “Hardcore Pawn.” These shows are making the pawnshop more acceptable today. Just like in the past, people are coming to realize that pawning remains integral to their financial lives. The National Pawnbrokers Association, a trade group, indicates that there are more than 30 million pawnshop customers per year.
At the end of most of my columns, I draw from life of the past and offer some thoughts for the future. Now, I am not going down that road; I am not going to suggest that if you require money for something you need or something you want, patronize a pawnshop. Today, you have many other options; Craigslist, yard sales, flea markets, eBay, Amazon, just to name a few. Let us leave survival by way of the pawnshop just where it belongs; a way of survival not for today but rather for those times, back in the day.
Diverse situations can certainly pop up that can spark turmoil for many folks whilst in unplanned circumstances. Procuring a good solid desired Quick Cash Advance Loan can be quite a good idea to help familie