The first lending institutions were founded in the late Middle Ages and were considered systemically important during the Corona pandemic. However, they still have to fight for recognition.
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The craftsman pawns a company car to pay the workers, the pensioner pawns her gold ring to make ends meet until the end of the month.
Over 90 percent of customers pick up their pawned items, according to the Federal Association of Pawn Loan Businesses. The pawnshop makes it easy to get short-term loans that you wouldn’t be able to get at a bank.
Monti di Pietà – Mountains of Mercy: first pawnshops in Italy
People pawn jewelry, clothing or tools – this has been common practice for at least 3,000 years. Private pawnshops already existed in ancient Greece and the Roman Empire.
The cradle of public pawn shops in Europe dates back to the late 15th century in Italy. During this time, the Franciscan Order founded pawnshops in Lombardy under the name “Monti di Pietà”, i.e. “Mountains of Mercy”. Poorer households should be able to get cheap small loans. Because private pawnbrokers often charge horrendous interest rates.
The first “Monte di Pietà” was opened in Perugia in 1462. Other cities followed. In 1500 there were already 130 Monti di Pietà in Italy. And unlike banks, they were founded as non-profit organizations.
Palazzo del Monte di Pietà: The building was created by the municipality of Vicenza and was officially opened on June 12, 1486 with the simultaneous establishment of a pawnshop in the church of San Vincenzo, which has since become the property of the Monte.
IMAGE / imagebroker
“Any profits derived, for example, from auctions of unredeemed pledged items should always be returned to the debtors.”
Die Historian Tanja Skambraks conducts research at the University of Mannheim the survival strategies of the working poor in the Middle Ages.
“This charitable motivation behind the establishment of the municipal pawnbrokers is an important distinguishing feature in relation to the banks.”
This makes these lending institutions in the Middle Ages a socio-political innovation, explains Tanja Skambraks.
Small loans, today we would speak of microloans, which pawnshops granted against an object as security, played a crucial role. The objects themselves were usually relatively worthless, according to the historian:
“They were mostly household items, but sometimes also jewelry or weapons, books. On the other hand, we also have traditions that show us that richer city citizens were happy to pawn their furs, their valuable items, and even their winter wardrobe at the Monte in the summer .”
This doesn’t just bring people money: People know that their possessions are kept safe in the lending institution, says Tanja Skambraks.
First German pawn shop in Augsburg from 1603
The first public pawnshop in what is now Germany was founded in Augsburg in 1603. The pawnshops only spread after the Thirty Years’ War at the end of the 17th century and in the 18th century. In their sermons, the Franciscans and founders of the Monti accused Jewish pawnbrokers of engaging in usury and drove them out of the cities. The topic of anti-Semitism was already very present when pawnshops were founded in Italy in the Middle Ages, says Tanja Skambraks.
“If we look at the traditions, we find a whole range of anti-Semitic topoi both in the municipal legislation that affects the pawnshops, but also in the sermons of the Franciscans, for example. [Es ist] known that […] For example, the first plague epidemic in Europe in 1347/48 led to the Jews being expelled as scapegoats.”
Waiting area of the loan office in Mannheim SWR
Mannheim pawn shop: the last municipal pawn shop in Germany
The stereotype of the “money Jew”, the “usury Jew” persists into our time and is always part of conspiracy stories. It is claimed that Jews are rich, greedy and control politics and the economy.
Has the anti-Semitic stereotype stigmatized the profession of pawnbroking to this day? Jürgen Rackwitz is managing director of “Leihamtes” in Mannheim, founded in 1809 by the Grand Duke of Baden, Karl Friedrich. Today it is the last municipal pawn shop in all of Germany; all the others are in private hands. Jürgen Rackwitz runs the Mannheim loan office as an official. Does he feel any of the stigma of being a pawnbroker? He laughs:
“The reactions when I say I’m a civil servant are more negative. But when I say I’m a pawnbroker, the first thing is: Oh… What are you doing? The interest is there. Negative? I haven’t experienced that yet.”
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2024-01-04 16:23:13
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