History of Pawnbroking - Sweden

Sweden

In Sweden there are no special statutes affecting pawnbroking, with the exception of a proclamation by the governor of Stockholm prohibiting the lending of money upon articles which may be suspected of having been stolen. Individuals still carry on the business on a small scale, but the bulk of it is now conducted by companies, which give general satisfaction. For many years there was in Stockholm a municipal establishment charging 10% for loans paid out of the city funds. The cost of administration was, however, so great that there was an annual loss upon its working, and the opportunity was taken to abolish it when, in 1880, a private company was formed called the Pant Aktie Bank 'pawn bond bank', to lend money on furniture and wearing apparel at the rate of 3 öre per krona a month, and 2 öre per krona a month on gold, silver and other valuables: a krona, which equals 1s. 14d., contains 100 öre. Some years later an opposition was started which charged only half these rates, with the result that the original enterprise reduced its interest to the same level, charging, however, 2 öre per krona per mensem for bulky articles—a figure which is now usual for pledges of that description. The money is lent for three months, and at the end of five months the pledge, if unredeemed, is sold by auction under very carefully prescribed conditions. In Norway a police licence is required for lending money on pawn where the amount advanced does not exceed 4, 10s. Beyond that sum no licence is necessary, but the interest charged must not exceed such a rate as the king may decide.