UPDATE ON FEB. 3: The City Council passed this ordinance today, with only Isley, Baldwin, and West voting against. Isley I expected. Baldwin said the ordinance is redundant and the protections already provided for. If that’s true, how come we keep getting pawn shops in sensitive neighborhoods, du uhh? This vote will work against her bid for Mayor this fall. West, well we can never figure out what makes West tick, he’s constantly harping on needs of sensitive neighborhoods, but will vote against them at least as often as for them. Go figure.
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Waaaay back in September of 2006, the Comprehensive Planning Committee of the Raleigh City Council began considering a new law that would limit where pawn shops could be located. Two-and-a-half years later, the City Council is finally thinking about taking action.
Any new pawn shops would only be allowed to be located in areas zoned Business, Thoroughfare, or Industrial. Currently pawn shops can operate in any area zoned Shopping Center, Buffer Commercial, Neighborhood Business, Business, Thoroughfare, Industrial-1, or Industrial-2 zoning districts. According to the City, based on Raleigh’s typical zoning patterns, this reduces the likelihood that a new pawn shop will locate immediately adjacent to an existing neighborhood, allowing new pawn shops to locate within the downtown central business district and along the City’s major highway corridors.
The basic operating principle is that pawnshops bring down neighborhoods, so it is a valid police function of the city to limit both the number and locations of pawn shops.
I tend to agree with the notion that pawnshops are bad news, but I wanted to get some quantitative verification (or refutation) of that. I am a pretty good amateur researcher if I may say so myself (I can use Google AND Google Scholar!) so I was really beginning to feel inadequate when I couldn’t find hardly any independent studies of the pawn industry.
When I finally stumbled across an article in the Journal of Research in Crime and Delinquency titled “Where have all the hot goods gone? The role of pawnshops,” I learned that:
“public knowledge of [the] market [for stolen goods] and its dynamics . . . is so impoverished as to border on the scandalous. Good policy cannot be developed on the foundations of ignorance.”
A glaring sign of this poverty is scarcity of research on pawnshops…” (1)
Amen to that brother (and thanks for validating my researching abilities).
To confound matters more, much of what is known comes from work done in a handful of British Commonwealth countries. Nevertheless, several characteristics of both pawnshops and petty thieves are clear. First the pawnshops:
“The business has almost always been associated with exorbitant interest rates and with facilitation of traffic in stolen goods. As a result, pawnshops are everywhere subject to specific state and local regulation. Some laws set maximum limits, or ceilings, on nominal (i.e., official) interest rates and on storage and other administrative fees that brokers use to push effective rates that customers pay to levels higher than nominal rates. In addition to licensing, bond, land use zoning and like requirements, other regulations focus mainly on identifying stolen goods and limiting their flow through shops.” (2)
“In general, research by scholars and journalists suggests three things. First, pawnbrokers do have some role in recycling stolen goods. Second, frequent pawners present the highest likelihood of acting as main agents through which pawnshops acquire hot goods. Third, the volume and value of these goods may be substantially greater than the tiny fractions that have been proposed.” (2)
As for the thieves, while they might not be the brightest bulbs in the chandelier, for the most part they do act rationally. They particularly value six traits of most items they consider absconding with: concealability, removability, availability, value, enjoyableness (this “may reflect the pleasure-loving lifestyle of many thieves and the people who buy from them”), and disposability. “… although all six elements will determine whether a product is a suitable theft target, the relative disposability of an item is critical in determining how frequently it will be stolen… as goods tend to be sold on very quickly after they are stolen, the speed and ease with which an offender can dispose of certain goods is likely to play a vital role in target choice.” (3)
There are other studies which also indicate that thieves are in a big rush to get rid of whatever they’ve just jacked ASAP, not only because they might want the next hit of crank ASAP, but also because they understand that the longer they hold onto something they more likely they are to get caught with it in their paws. So they tend to make a beeline to the nearest point of disposal.
“Apprehension by the authorities while the goods are in one’s possession greatly increases the odds of conviction. If a pawnshop deals in stolen goods, that risk is reduced for criminals operating in its vicinity, and the consequent increase in expected rewards should encourage criminal activity in locations with pawnshops. This incentive may be most powerful in densely populated environments. The closer proximity of the pawnshop to targets of theft together with the anonymity of the city may conspire to make the pawnshop a convenient destination for the urban criminal’s stolen goods.” (4)
That’s why when a pawn shop finally opens two blocks down from your crib, home burglary in the hood goes up. You don’t have to go to the library to understand that pawn shops attract criminals, you just gotta watch the local news on a semi-regular basis:
Dec. 23, 2008 - Pawn shop employees charged in stolen goods probe
Aug. 21, 2008 – Brothers, father arrested in pawn shop raid
Aug. 16, 2005 - Build it, and they will take the tools
Jun 4, 2001 - Hundreds Of Dollars In Merchandise Recovered In Pawn Shop Sting
Dec 26, 2000 - Thieves Are Cashing In At Pawn Shops With Stolen Gifts
According to the Christian Science Monitor, Raleigh wants to keep its pawnshop-to-resident ratio to 1:19,000 or less (that was certainly news to me) (5). There were relatively few pawnshops during the first half of the 20th century, owing in large part to highly restrictive laws. The business exploded in the second half of the century with changes in laws that allowed higher interests rates. The number today is hard to pin down exactly, but there would seem to be about as many pawnshops in the U.S. as there are McDonald’s restaurants. And like so many other service industries, the trend over the last twenty years has been away from independent shops to outlets of regional and national firms. (2)
So the genie is already out of the bottle, and the pawnbrokers will hire high-priced attorneys to trot out individuals who if not for the pawnbroker would have lost his or her home and car and anything else that could have been repossessed. And they will pooh-pooh the crime stats, reminding us that pawnbrokers report all transactions to the police.
In this case, it is local planning attorney Tom Worth who has appeared at the public hearings on this proposed law. What he and other advocates forget to mention is that while the brokers do report all items to police, they only have to hold an item for two days before selling it. It often takes more than two days for the forms to get completed, mailed, and received and then processed by the police, by which time that chopsaw your neighbor bought just six months ago and you were really looking forward to borrowing this weekend to start that new deck may be long gone (and do you believe the property taxes collected on the buildings housing pawn shops even begin to pay for this police service?). If it is even reported as stolen, as most thefts of small items are not reported. Most of these stolen items do not have unique features like serial numbers that can be used to identify them as yours. And like the criminal didn’t show the pawnbroker a fake ID. Do you know if that Bosch saw and Makita hammer drill out in your garage have serial numbers? If they do, do you have any clue what they are?
I certainly don’t.
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- Aire Frieberg. Regulating Markets For Stolen Property (1997)
- Mike Sutton. Supply By Theft: Does The Market For Second-Hand Goods Play A Role In Keeping Crime Figures High? The British Journal of Criminology 35:400-416 (1995)
- Melanie Wellsmith and Amy Burrell. The Influence of Purchase Price and Ownership Levels on Theft Targets. The British Journal of Criminology 45:741-764 (2005)
- Thomas J. Miles. Markets for Stolen Property: Pawnshops and Crime. The University of Chicago Law School
- Patrik Jonsson. US Cities Act to Curb Growth of Pawnshops. Christian Science Monitor April 9, 2007
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Tidbits from #4 above:
Texas law bars pawnshops from displaying dirks, daggers, blackjacks, hand chains, sword canes, switch blades, and brass knuckles.
Delaware law forbids pawnbrokers from accepting prosthetic limbs and workman’s tools.
Minnesota law prohibits the location of a pawnshop within 10 miles of a casino.
Michigan law prevents pawnbrokers from conducting business with a person who “is of unsound mind, or neglects all lawful business, or that he habitually spends his time frequenting houses of ill-fame, gambling houses or tippling houses, or that from drinking, gaming, idleness or debauchery of any kind he is squandering his earnings or wasting his estate, or that he is likely to bring himself or his family to want, or to render himself or his family a public charge, or that he is suspected of thievery.”