How Franciscans Invented Pawnshops

You probably don't think men taking a vow of poverty would have much to contribute to an economy. And yet, the Franciscans provided one of the most important developments in medieval history, something that has an affect on us even today.
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#CatholicismInFocus

[@Alkemisti]

When talking about the development of economics, nobody expects the Ordo Fratrum Minorum.

[@quisutdeusmfl]

neither nobody expects the Spanish Inquisition

[@ksmith4932]

Well I definitely never learned that in school, thanks for the insight into this fascinating bit of banking history!

[@wargriffin5]

"A Benevolent Lending Institution" - The Franciscans also invented marketing, apparently...

[@brucequinn]

Excellent! I’ve got an MBA and I work full time on business strategy and I loved your unexpected research and presentation!!

[@CB-ou6gc]

Thanks! It’s good to know how the Church contributed to so many things in the world. Here’s a great book on different topics of the Catholic Church: “How the Catholic Church Built Western Civilization “ by Thomas E Woods, Jr., Ph. D.

[@joshuadspeer]

That is a very good book.

[@astrol4b]

From theoretical point of view Luca Pacioli was the franciscan friar that invented the modern accounting with double entries in the renaissance period.

[@louispalombi3312]

Father Casy please pray please pray for me I'm 61. I have a stroke, heart attack, and am diabetic. 2 weeks before Easter my nephew died of a mixture of drugs and alcohol. Me living in upstate NY. And he in CT. I couldn't go to funeral. My heart is broken and I turned to porn . Please pray for me

[@ronvanwegen]

Sorrow, Confession, Forgiveness. Rinse and Repeat. Ask God for the gift of continence. Receive said gift. Fight the ongoing battle. With God you can. Without him you cannot. I will pray for you. I'm 64. I know of what you speak. Judgement is based on faithfulness - not success. Mercy "trumps" justice. Churchill - Never Give Up!

[@monstersong7433]

There is a channel called Fight the New Drug that has women describe what it was like to be in porn. To hear their stories may help you turn away. And there are men's groups, some Catholic, that support one another. Good luck. You are in my heart and I have prayed for you.

[@louispalombi3312]

Thank you so very much. God Bless you

[@matthiggins6750]

As this video makes clear, the Church supports a free market economy but opposes predatory capitalism. Now, if American Catholics would vote for members of Congress who believed in a proper balance between consumer protections and the role of banking in a capitalist economy, prosperity would be shared by more and income inequality would reduce.

[@andresarpi1143]

It's not that easy tho. Denmark has a bigger GINI index that the US.

[@Tttb95]

Can you name me some predatory capitalists who arent protected by the government and over-regulation?

[@matthiggins6750]

@@Tttb95 As Pope Francis says (I'm paraphrasing), the world reacts in horror when the stock market weakens but doesn't when homeless people die of exposure. Too many equate the stock market and banking as the only signs of a health economy. These are part of it, but when banks become too big to fail while millions live in financial or even worse, food insecurity, then that needs to be corrected.

[@Tttb95]

@@matthiggins6750 None of that even makes sense. Im not a fan of Francis or many of his views on social issues (on Canon/religious issues Im sure hes well versed). He oversimplifies issues and proposes solutions that have many terrible unintended consequences. When markets crash, suicides spike. Case in point look at suicides (esp among young adults) in 2020 vs 2019. If the banks failed in 08 things would have been even worse. Sure you can disagree with how they were bailed out (although it is helpful to remind Americans they made money off of the bailouts). But the fact they are too big too fail is a complete non sequitur to homelessness or other social problems. Also on the issue of homelessness, whose job is it to manage this problem? Especialy when you consider most homeless people are where they are because they were not responsible with the capital given to them (whether thats their own fault or not is a separate issue). Governments cannot afford to do it, and they have no right if they cant get the funds from the people. Even the bible mentions good acts must not be forced, they must be done willingly. The ends DO NOT justify the means.

[@matthiggins6750]

​@@Tttb95 I am not sure what your larger point is. Of course all businesses are regulated by the government. That's not the point. My point is that there is an imbalance in government policies that favor the wealthiest organizations and individuals, at the expense of many. Also, it appears that you haven't had much contact with the homeless. I can assure you that very few of them are that way because of "not being responsible with their capital". aka, it's there own fault.

[@morenobaruffini2689]

I'm from Lombardy :-) and I have a PhD in economics, and I really enjoyed your presentation! Well done!

[@darrylreyes5977]

The Franciscans were the original Pawn Stars.

[@VincenzoRutiglianoDiaz]

My name is Michele di Milano and this is my Monte de Pieta I work here with my brothers and my Spiritual Friends Everything in here has a story and a price One thing I’ve learned after 500 years you never know WHAT is gonna come through that door

[@edosamsl]

Really love this story. One of the Franciscan heritage.. affect our lives today

[@nathanngumi8467]

Word.

[@tonydivito3489]

Very interesting. I really enjoy church history and trivia. Thanks!!

[@Jkp1321]

Usury is now the basis of all modern economics. Even if it's "approved" usury many to this disagree about the issue. I read somewhere that loans at interest should be set by the person receiving the loan, such that they are aptly motivated to make sure the loan is paid back on time.

[@Jkp1321]

@Don Espoleto I think perhaps if someone proves themselves to be a reliable person to a lender, so essentially credit, they could earn the trust to receive interest free loans

[@TheLincolnrailsplitt]

I doubt that will work.

[@Tttb95]

@@Jkp1321 Then why would anyone lend out their money? Youre asking people to take a risk and to not get compensated for it. This is why free markets work so beautifully. If parties disagree no transaction takes place, if they agree then a transaction will occur.

[@Jkp1321]

@@Tttb95 ever heard of the virtue of charity/almsgiving?

[@Tttb95]

@@Jkp1321 Come back to me when people are willing to give a majority of their savings to charity and no return. People every day give trillions to risky assets with a return profile. You seem to have no idea of how capital moves within an economy and live in a fantasyland with constant sunshine and rainbows. The beauty of capitalism is that it actually doesnt rely on virtues to work. Your reliance on charity fails when people arent charitable.

[@Fasolislithuan]

Franciscans but also dominicans and jesuits. The School of Salamanca was the first systematic effort to develop Economics.

[@kevins6627]

I am from a syro Malabar Catholic and love your videos

[@jgil1966]

Cool to know these sides of history that as laypeople we rarely engage with or barely know about, God bless you Fr Casey!

[@Radtrad_strada]

Thanks Father for another informative video. 😇😇

[@runargunnarsson7336]

Very impressive story, thank you for sharing!

[@bonaventura1519]

Interesting history, and the history is what it is, but I have mixed feelings about the consequences of the decisions made. Usury is not something we talk about today, but it needs to be.

[@TheLincolnrailsplitt]

There is nothing wrong with charging interest.

[@Jozenchill]

TheLincolnrailsplitt as long as it doesn’t cause the customer to end up in a worse position.

[@Paul-qe1jn]

Yes. Charging interest on money should be condemned. Especially by well to do people. Loan sharks etc come up through this loophole. Especially in developing countries this is an epidemic that leads to huge losses, suicides etc. We need anti usury groups in parishes where people pool money to give to deserving people without expecting interest in return. Also kids need to be taught at a young age about lending.

[@marcoswillianl]

@@TheLincolnrailsplitt Ok jew

[@davidwamiti6797]

And everyone had a happily ever- yeah I'm not even gonna finish that sentence ... Lmao I was crying😂😂

[@coffeehousedialogue]

Credit where credit is due. Respect from this Reformed Christian here.

[@santiagoarangoramirez983]

One of your best videos! Congratulations

[@EvanC0912]

Really nice info coming at the right time for me

[@veronicahispana]

Super insteresting, thank you for this important bit of general knowledge.

[@WashingtonDC99]

Thank you so much for the information provided Father Casey. I did not know that. I, personally used the pawn shop a few things in the past when I was very, very poor but thanks be to God my Almighty Father in Heaven that those days are long, long gone. God has given me so many blessings. I have been through some things that I don't wish to any body not even to an enemy. God bless you Father. Greetings from DC. 🙏🙏👼😇❤️❤️💙💙🤓😎 God is always good.

[@A-man-nothing-more]

I’m Francis of Assisi and this is my pawn shop.

[@garyspencer-salt4336]

Money is no more than a tool to achieve a goal but not the end in its self - a smart group of men

[@markjadin1372]

Father, you have a great talent! I sincerely enjoy your content. Blessings.

[@carloscarpizo5845]

Nothing but respect 😤

[@pablononescobar]

4:58: that's actually not a Dominican but a Trinitarian friar (notice the blue and red cross on his scapular)--in fact, we know who he is: it's Hortensio Félix Paravicino, in a portrait by none other than El Greco

[@yohanessunjoko2837]

Love to hear this

[@sumdumbmick]

I have a pipe dream to buy a few houses outright and rent them out. But not in the usual way, because I would completely own the buildings and land free and clear, if the tenants miss a payment here and there it's not a big deal, they don't need to fear threat of eviction just for that. Further, part of the services they should receive for paying rent includes access to convenient childcare, guarantee of transportation to and from work, access to basic nutrition and the like, as well as connections to relevant educational and employment opportunities. Having lived in poverty while trying to raise small children these problems are all very familiar to me. And the way things normally work is that people only offer one service and demand quite a lot of money for it, and if you mess up in the slightest you end up having to pay even more. None of the services are associated with each other or in communication with each other, so it's always down to the stressed out, overworked, underpaid, junk food fueled, sleep deprived parent who's unable to spend time with their kids, to sort everything out. If that system doesn't qualify as blatantly immoral, I'm not sure what would.

[@DanielHarris171]

This is really interesting. I know of many non-profits who give out microloans to undercut predatory lending. It's cool to people doing this centuries before.

[@TheCynedd]

Interesting that the Franciscans started the first pawn shops but Saint Nicholas is the Patron Saint of Pawnbrokers. 😊

[@mikelastname1220]

I believe the invention of Pawn Shops by the Franciscans is true, I think it only pertains to Western culture (European) and the Church. It was actually the Chinese who invented the concept about 3,000 years ago.

[@Chas1160]

Very interesting. Borrowing is Ok but must be done in a prudent way. Making a profit is Ok too because it can make our lives more comfortable. However, it’s when we horde it and not help others in need , when it becomes a problem. I was raised in the Catholic Faith and by far they have been the leader in helping people in need. For example, housing, clothing, drug rehab, unwed mothers homes, and feeding the poor etc.

[@robertortiz-wilson1588]

Very neat to learn!

[@szatanowska]

Great job man!

[@yunusjonas2278]

This pic of this video is Icon of Franciscan martyrs of marrakesh

[@patrikpalenik2849]

Very interesting!

[@justchevrotainrating]

this man for real threw shade on the Dominicans lol I love this place

[@deirdrelewis1454]

Fascinating

[@martasosa6786]

Superb video.

[@johnnykay7411]

Some of the richest people around were the members of the clergy who had to be begged to help their fellow man.

[@art1208]

Interesting! A Franciscan, Fray Felix Huerta, founded the first savings bank in the Philippines to help the poor of Manila.

[@nuna1627]

Wow, this is interesting fact

[@gsneff]

Free markets always result in the best outcomes for all, especially the lower classes.

[@Kirin2022]

It should be added that subsequent economic theory was developed primarily by Dominicans and Jesuits, first and foremost at the University of Salamanca. From the beginning of the 16th century the traditional Catholic conception of man and of his relation to God and to the world had been assaulted by the rise of humanism, by the Protestant Reformation and by the new geographical discoveries and their consequences. These new problems were addressed by the School of Salamanca. The leading figures of the school, theologians and jurists Francisco de Vitoria, Domingo de Soto, Martín de Azpilcueta (or Azpilicueta), Tomás de Mercado, and Francisco Suárez, [first 4 were Dominicans, the last was Jesuit] were all scholars of natural law and of morality, who undertook the reconciliation of the teachings of Thomas Aquinas with the new political-economic order. [from Wikipedia]

[@jessdymphna7615]

This is eye opening

[@freyasmyth2091]

Really interesting! Also "making a profit for further investment" sounds like what we would call today a "social enterprise" .

[@joehouston2833]

They were filled with the Holy Spirit and Economics is about decisions, discernment and rate of production..

[@Lerian_V]

How do you determine a modest amount of interest to charge?

[@inquisitorlev8456]

And the usury door was opened and the ultimate outcome is debatable (I guess I still flirt with heresy). I guess I should just be quiet and make my 241st student loan payment...

[@spiritalive6558]

Interesting

[@logosrhema5402]

Amen

[@tubejim101]

What would happen if a person could not pay back the loan?

[@BreakingInTheHabit]

They wouldn’t get their collateral back.

[@uncledot1868]

A very interesting video, but I must give a correction: Pope Leo's Papal Bull at the Fifth Lateran Council was called "Montes Pietatis", not "Inter Multiplices".

[@BreakingInTheHabit]

I'm sorry, but your correction is not correct. You have confused the words. Montes Pietatis is the social order that the friars created and Inter multiplices is the name of the papal bull from Lateran V.

[@uncledot1868]

@@BreakingInTheHabit But I read Inter Multiplices online and it has nothing to do with Montes Pietatis. It was written in 1853 by Pope Bl. Pius IX.

[@BreakingInTheHabit]

You read the wrong inter multiplices. There are, fittingly, multiple documents by that name. I cited the one written in 1515 by Leo X (as I mentioned in the video). Here is a link: lendhopingnothing.wordpress.com/fifth-lateran-council-session-10-excerpt-1515/ I hope that this will be an opportunity for a bit more intellectual humility, that in the future, before correcting someone with a rather silly statement, you will ask for clarification.

[@uncledot1868]

@@BreakingInTheHabit I apologize if I sounded presumptuous, but after I watched your video I immediately searched for "Inter Multiplices" online, and the first thing that popped up was the one by Pope Pius IX. I did some more searching, but couldn't find one by Pope Leo X. So I thought that you may have made an accident and quoted the wrong document by mistake. So I offered you what I thought was a correction, and I did so in all charity. But since there are multiple Inter Multiplices documents, it would be good to have that be clarified, so that others wouldn't make the same mistake.

[@josueleonel2415]

Great! There are a lot of examples of that. Why don´t you make a video on the catholic contributions to science during the middle ''dark age´´?

[@MaterDolorumOraProNobis]

5:00 Heyoooooo shots fired! Lol

[@brunogiambroni1422]

I’d watch a Pawn shop reality though show if it was all Franciscan monks lol

[@ajobimlover]

Brother, which lodge do you belong to? Clever guy.

[@ahem88]

This is fantastic! modern capitalisms origins.

[@Mixer-he2wb]

Where are we today?

[@TheLeonhamm]

A great little series. 'Interest' and 'usury' are not quite the same, of course. I suspect almost everyone would still condemn usury - the notion of demanding unlawful or immoral amounts of recompense for lending capital (or indeed goods, e.g. seed, tools, services). The doctrines of the Church required - and still require .. believe it or not - condemnation for exacting incommensurate rewards for the risk of lending (note that well, demanding or extorting recompense beyond reasonable risk); this is a matter of moral reason as well as one of divinely revealed law, i.e. in scripture; it is unjust. The calamity of unjust lending to the poor is still condemned. In fact, there are even laws to prohibit the exploitation of the poorly paid, though sadly they were mostly cast aside thirty years ago .. to help increase homeownership, and stimulate a lagging economy. Consider the terrifying effects in the USA of Government Sponsored Enterprise venture capital lending via Sub Prime Loans, the poorest souls were trapped into borrowing vast sums - often without the secure means of ever being able to repay the loans; that is usury (encouraged by political parties, at times with the best of intentions). The rise in canonical censure for laymen lending at lucrative interest (to make a living by profiting from unjust loans) followed on the condemnation of the clergy engaging in this practice. It was during the periodic crusades that these censures - and even severe punishments - were introduced; to protect the families and properties of men going to defend Chrisitan pilgrims to and residents of the Holy Land - all at their own expense. One of the main accusations used to have the Knights Templar suppressed, for example, was their eagerness (and ability) to evade the censures and penalties involved in lending at extortionate rates - via lay representatives; they also received large amounts in charitable donations to undertake defence and care of the pilgrims, even though they had long since ceased actually to protect them (a nice little 'protection racket'); thankfully, the Franciscan pledged loans system, pawnbroking, challenged the at times untrustworthy or mean private pledge merchants of that time ... I guess we just don't like re-learning the good old answers to seemingly 'new' problems. God bless. ;o)

[@cjknox2563]

Hold on that was interesting but I had a good laugh about the Dominicans... hahahahaha... Peace OP

[@vakudibeardefender3953]

Thank you Christianity, for saving civilization from imploding...............

[@breakingboardrooms1778]

The franciscans invented capitalism? Oh, Father Casey, I'm sorry for you!

[@trinidadraj152]

It's called microfinance. It's almost the opposite of the capitalist drive for more $.

[@CIK501]

How do you become a Franciscan and can a person who was born in another religion become one.

[@d2dolan]

Go to the web. Find the Franciscan province (region) in your area and contact them. They will help you from there. Good luck and prayers🙏

[@angelapicardo1268]

If you r in India go to a catholic Church and meet a priest He will explain. How to become a Franciscan I am a lay Franciscan in Mangalore Karnataka India

[@gridcaster]

Mostly true, but calling the Franciscans first is a little misleading when it comes to usury/banking...there were plenty of Church permitted loans for interest going back into the Late Middle Ages (like the Knights Templar Banks). The expansion of the loanable funds market keeping interest rates low is interesting, but you don't really cite sources to check...when you say to look at the interest rates in places where there were no Franciscans making loans what is the source information you are using? I'm curious to see how much data can really line up with specifically with the Franciscans on this point.

[@alexsalentine739]

Don't disrespect my Dominicans!!!😡😡😡😖😖

[@jfman22345]

Franciscan friars the original capitalists

[@user-po5bi6jb9g]

Yay usury

[@regiumcroatiumrexbh6003]

Plizzzzz do a good video

[@TheLincolnrailsplitt]

How did Karl Marx revolutionise "things like banking and commerce"? I doubt he contributed anything practical to those fields at all.

[@bandie9101]

10 usurer dislike this video

[@t7u5ebuvduhyye34t]

2:10

[@davidcope5328]

That's a yikes from me, kinda takes away from the whole franciscans are cool thing when this whole adventure is spurred by antisemitism.

[@BreakingInTheHabit]

I'm sorry, I don't understand. What could possibly be anti-semitic about this...?

[@nickw9766]

I don’t see any anti Semitic tones in this video

[@zayan6284]

Dirty grabbler...

[@nickw9766]

Ambrose comments like that aren’t worth responding too. Nice ad hominem

[@zayan6284]

@@nickw9766 no, go away, I don't want a loan- no, I wont give you any money; shoo, shoo!

[@nickw9766]

Ambrose 🙄

[@nickw9766]

Ambrose I made an observation and you make a personal attack on me. How interesting

[@regiumcroatiumrexbh6003]

Medjugorje

[@carolusaugustussanctorum]

🇧🇦👍🏻

[@ariebrons7976]

Dear fr. casey, now that i have calmed down allow me to present to you my issue with this policy: what if the poor can't afford to pay any interrest? the bible argues for universal debt cancelation everey seventh and fiftieth year. this is to guarantee a stable ecconomy. the current franciscan systhem of lending is economic cyanide. 'it does not benefit society, only brings it down' economics explained (what makes an economy healthy?) go look it up on KZbin.

[@ariebrons7976]

the full quote was it does not benefit society it only brings it down, by profiting off the mysery of the poor

[@luisaymerich9675]

The church also runs charities for the poor. I personally know someone who told me she was about to miss a mortgage payment one month. Her neighbor worked for a Catholic charity and obtained for her the money to pay for that month. Not only did she not have to pay interest, she did not even had to pay back the money. The Church helps in many ways. The pietati montes system allowed people to obtain loans when other lenders would not consider taking the risk or lend at onerous (loan shark) rates.

[@ariebrons7976]

@@luisaymerich9675 my local pawn shop does not 'do' charity. How about men of other faiths beside specifically catholocsysm?

[@regiumcroatiumrexbh6003]

Medjugorje

[@carolusaugustussanctorum]

🇧🇦👍🏻

[@regiumcroatiumrexbh6003]

Medjugorje

[@carolusaugustussanctorum]

🇧🇦👍🏻