History of Pawn & Pawning

A pawnbroker accepted Queen of Spain, Isabella of Castille's royal jewels as collateral to finance Christopher Columbus' expedition ships, the Nina, the Pinta, and the Santa Maria for their voyage to America. Queen Isabella's quote inscribed on the statue, "Columbus' Last Appeal to Queen Isabella," in the rotunda of the California State Capitol says: "I will assume the undertaking for my crown of Castille, and am ready to pawn my jewels to defray the expenses of it, if the funds in the treasure shall be found inadequate."

Pawn broking is the oldest method of lending money. Evidence of transactions date back to China as early as 2,000 - 3,000 years ago. However, modern pawn broking became more distinguishable in the Middle Age.

The word "pawn" originates from the Latin word "patinum" that means cloth or clothing. The French work "pan" refers to a skirt or blouse. In the early centuries, the principal assets people had were their clothes and they borrowed money by pawning their clothes.

Pawn Today

In 1971, Fashion designer Diane Von Furstenburg raised capital to launch her "wrap dress" business by pawning her diamond ring. Her signature wrap dress became a fashion craze in the 1970s and earned her the reputation as one of America's most well-known designers. Today, Von Furstenberg's business has grown into a multi-million dollar corporation and has extended beyond clothes into luggage, perfume and accessories. It all started with a Pawn Loan.

Dec. 6, 1996, marked the first annual National Pawnbrokers Appreciation Day. The celebration was created by Nancy Michaels of Impression Impact in Concord, Mass., and listed in Chase's Calendar of Events as a holiday "designed to celebrate and acknowledge the valuable lending and retail services provided by pawnbrokers throughout the country." The chosen date of Dec. 6 was no accident - it's also St. Nicholas' Day, the patron saint of pawn broking.

Between 70 and 80 percent of all items pawned are also redeemed. Many shops that cater to a more "repeating" customer base, have redemption of over 90 percent. Santa Cruz Pawn's redemptions rate is well over 90%.