“Of the numerous receptacles for misery and distress with which the streets of London unhappily abound, there are, perhaps, none which present such striking scenes as the pawnbrokers’ shops…”

So began Charles Dickens in The Pawnbroker’s Shop, published in 1836 in Sketches by Boz. Pawnbroking is popularly associated with Dickensian London, where the industry reached a peak during the mid-19th century. By 1854 there were an estimated 2500 pawnbrokers across the UK, of which around 380 were in London.

But the origins of pawnbroking stretch back at least 3000 years. One of the oldest forms of bartering in the world, it is believed to have started in China, quickly spreading to other ancient civilisations such as the Greeks and Romans.

During the Middle Ages pawnbrokers were charitable organisations offering genuine help to those in need. The trend was set in Italy in the 13th century by a Franciscan monk, Barnabe de Terni, who started a ‘mont de pieté’ (charity bank), giving interest-free loans to the poor on the receipt of goods of an equivalent value. The venture spawned a number of similar institutions across Europe, including the UK. In 1361, Michael Northbury, the Bishop of London, donated 1000 silver marks for a free pawnshop for the poor.

By the 15th century some pawnbrokers in Italy were starting to charge small amounts of interest to cover expenses. The idea gradually caught on, despite much opposition, and similar pawnshops were soon being established throughout Europe and the USA.

For poor people, pawnbroking was a lifeline, although the aristocracy and even royalty were not above pawning treasured possessions to fund their extravagant lifestyles. Henry VI, for example, pawned some of the crown jewels to fund his wedding to Margaret of Anjou – and some of the jewels were never redeemed! Richard II also pawned some of the crown jewels to pay for his wedding to Queen Anne of Bohemia.

The growth of the industry
The modern pawnbroking industry can trace its roots to the Medici family, a dominant financial dynasty of 15th century Florence, famed for banking and moneylending. Soon others were emulating them, including the Lombards, a family of goldsmiths in medieval London who expanded their trade to include stockbroking and pawnbroking.

By the 17th century the industry was being brought into disrepute by the increasing numbers of pawnbrokers handling stolen goods. In 1603, James I passed an Act stipulating that the pledging or selling of stolen goods was invalid, and the pawnbrokers could be fined double the value of the goods. Despite this, unscrupulous practices abounded throughout the 17th and 18th centuries, and pawnbrokers were generally regarded as untrustworthy people.

In 1785 the industry was finally brought under some sort of control with the introduction of compulsory pawnbrokers’ licences. Duty was charged at a rate of £10 in London and £5 elsewhere, with interest fixed at 0.5% per month and the loan to be repaid within one year. A further Act in 1800 raised interest to about 1.67% per month – equivalent to 20% a year – and customers had up to 15 months to redeem their pledges. The Act was largely influenced by Lord Eldon – later Lord Chancellor – who had made use of the pawnbrokers’ services himself as a struggling young barrister.

The Act was amended several times, but was given its biggest overhaul in the late 19th century after the Pawnbrokers National Association and the Pawnbrokers Defence Association campaigned for a fairer deal. A Select Committee on Pawnbrokers, formed in 1870, paved the way for the Pawnbrokers’ Act of 1872, which regulated loan charges and introduced a number of other stipulations. This included displaying the word ‘pawnbroker’ in large letters over the shop door, and requiring new pawnbrokers to produce a magistrate’s certificate before being able to receiving a trading licence. This Act is still largely in force today.

The ‘pop’ shop
Many pawnbrokers were family-run businesses, usually employing three people – one to value the item being pawned, one to issue a ticket and one to put the item in storage. A typical pawnbroker’s shop featured a large trading counter and a display of unredeemed pledges at the front of the shop, with a panelled pledge room at the rear. In The Pawnbroker’s Shop, Dickens gives a good idea of the kind of items that might be found within:

A few old china cups; some modern vases, adorned with paltry paintings of three Spanish cavaliers&helli; several sets of chessmen, two or three flutes, a few fiddles&helli; some gaudily-bound prayer-books and testaments, two rows of silver watches&helli; numerous old-fashioned table and tea spoons&helli; cheap silver penholders and snuff boxes&helli; strings of blankets and sheets, silk and cotton handkerchiefs&helli; an extensive collection of planes, chisels, saws and other carpenters’ tools, which have been pledged, and never redeemed.

Unsurprisingly, pawn shops had something of a stigma attached to them. Customers were reluctant to be seen entering, knowing that they were effectively advertising their straitened circumstances to any observers. For others, though, pawning was a weekly occurrence and an accepted way of life. It was not unusual for a regular customer to pawn his coat on a Monday, redeem it in time to wear to Church on a Sunday, and then pawn it again the next day. Before the introduction of the welfare state, pawnbroking was a lifeline for many working class folk.

The 20th century saw a gradual decline in pawnbrokers’ shops as social security, high street bank lending and credit cards became widely available. Over the last decade or so, though, with the onset of the recession and tightening of credit controls, pawnbrokers are once again flourishing, offering a viable alternative for those feeling the pinch.

Finding your pawnbroker ancestors
If you know which area your ancestor worked in, the relevant local record office is a good place to start. Here you can check census returns and local trade directories, which will confirm the location of your ancestor’s shop and the dates he worked there. Census returns for England, Wales and Scotland can be searched online thegenealogist.co.uk. Birth, marriage and death certificates will also confirm your ancestor’s occupation, and should indicate whether other members of the family were also involved in the trade.

Wills are another useful source as they will confirm your ancestor’s trade as well as indicating whether it was a family occupation and whether any bequests were made, including unclaimed pledges. Local record offices should hold indexes of wills issued before 1858 (and again, many are available at TheGenealogist). From 11th January 1858 wills were issued by the Probate Service, and you can search online at www.gov.uk/wills-probate-inheritance. There is also a detailed index of wills on microfiche at The National Archives.

Local record offices might also hold papers relating to pawnbroking businesses and local pawnbrokers’ associations, police records relating to robberies where the stolen items found their way into pawn shops, and relevant court records. You may also find records relating to The Benevolent Society of Pawnbrokers and The Benevolent Society of Assistant Pawnbrokers.

The National Archives holds Home Office papers relating to Pawnbrokers’ Acts, the records and papers of individual pawnbrokers and pawnbroking families, registers of pawnbrokers’ certificates and papers of regional pawnbrokers’ associations.

Two trade journals, The Pawnbrokers Gazette and The Pawnbrokers Gazette and Trade Circular, contained trade advertisements, news and information, and might yield useful family titbits.

Finally, for a fascinating glimpse into the pawnbroker‘s world, there are several museums that include pawnbrokers’ shops among their exhibits. There is a recreated pawnbroker’s shop at the Black Country Living Museum .