Our special guest at our June 2026 roundtable was Richard Vague, author of The Banker Who Made America, a biography of Thomas Willing. Vague, a veteran of the financial services sector and former Secretary of Banking and Securities for Pennsylvania, discovered Willing while researching the history of banking leverage ratios. He found that Willing was not only the first president of the first two major banks in the United States but also the senior partner of the well-known financier Robert Morris. Vague describes Willing as a "deep cut" of the American Revolution whose legacy was obscured because he voted against the Declaration of Independence.
Early Life and Business Success
The firm’s success was largely driven by the partnership between Willing and Robert Morris, whom Thomas promoted to equal partner after Morris served as a teenage apprentice. Vague characterizes their relationship as a perfect balance: Willing was the conservative anchor, while Morris was the aggressive "Wheeler-dealer". Together, they grew the business 70-fold during Willing’s tenure.
Beyond commerce, Willing was a central figure in Philadelphia’s civic life. He served as Mayor of Philadelphia, an associate Supreme Court Justice in Pennsylvania, and a member of the Pennsylvania Assembly. He was a leader in the early protests against British overreach, drafting and serving as the principal signatory for the merchant protest against the Stamp Act and the Townshend Acts.
The Revolution and the 1776 "Coup"
One of the most complex aspects of Willing’s life was his opposition to independence in July 1776. Vague explains this through the lens of social history and economic stability. Philadelphia’s elite, including Willing, were often wealthy, Anglican, and English-leaning merchants who had benefited from unprecedented economic growth within the British Empire. They believed the conflict with Parliament could be resolved through negotiation.
In contrast, a massive influx of Scotch-Irish Presbyterians and other groups had tripled Pennsylvania's population; these newcomers were often farmers who felt unrepresented and unprotected by the Philadelphia elite. This internal tension led to what Vague and the host describe as a "coup d'etat" in Pennsylvania’s government, where radical elements overthrew the conservative assembly to push for independence. While Morris and others avoided the final vote to allow a unanimous declaration, Willing showed up and voted "no," a move that significantly damaged his historical reputation.
Wartime Conduct and "Hedging Bets"
During the British occupation of Philadelphia, Willing chose to remain in the city. Vague suggests this was a practical move to keep his business alive and to continue supplying the revolutionary army. However, this led to accusations of loyalist sympathies. Willing navigated a precarious middle ground: he refused to sign a loyalty oath to King George III when pressured by General Howe, but he also hesitated to sign an oath to the new United States government.
We discussed the possibility that Willing and Morris may have been hedging their bets as a business strategy, ensuring that at least one partner remained in good standing regardless of which side won the war. Despite the "taint" of his 1776 vote and his conduct during the occupation, Willing’s financial expertise made him indispensable to the struggling Continental Congress.
The Father of American Banking
Willing’s most significant contribution was the establishment of the Bank of North America in 1781, the first true bank in the United States. At the time, the revolutionary cause was nearly bankrupt; the Continental currency had become worthless, and the budget for the year of the victory at Yorktown had dwindled to just $2.6 million.
Willing and Morris effectively funded the government using their personal credit. Morris issued personal notes, colloquially known as "Short Bobs" and "Long Bobs," which merchants accepted when they would not take government paper. As president of the Bank of North America, Willing maintained a reputation for impeccable prudence. He famously denied a loan request from his own partner, Robert Morris, demonstrating that the bank was an independent institution rather than a personal "slush fund".
Vague argues that Willing established the model for banking in America. When the Bank of New York and the Massachusetts Bank were founded, their directors traveled to Philadelphia to learn the trade from Willing. He described the early days of American banking as a "pathless wilderness".
The First Bank of the United States and Political Power
Following the war, Willing’s influence grew as he became the first president of the Bank of the United States (BUS). This bank had a capitalization of $10 million, which was triple or quadruple the lending capacity of all other American banks combined. This massive concentration of power was the primary reason figures like Thomas Jefferson feared the institution; Willing held the "implicit power" to influence votes by potentially denying loans to political opponents.
Willing remained fiercely independent of political pressure. In 1796, he even forced the federal government to make an early repayment on a loan, a move that Vague notes would be "unbelievable" today. Despite political differences, Willing maintained a "fundamental graciousness". When Jefferson was vice president and socially shunned in Federalist-dominated Philadelphia, the Willing and Bingham families were among the few who continued to welcome him. This pragmatism allowed Willing to develop a productive working relationship with Albert Gallatin, Jefferson’s Secretary of the Treasury, who eventually became a "huge fan" of the bank's power.
Relationships with the Founders
The recording highlights Willing’s connections to other legendary figures:
- Alexander Hamilton: Hamilton viewed Willing as a mentor. Interestingly, as a 16-year-old clerk in St. Croix, Hamilton had actually conducted business correspondence with Willing’s firm in Philadelphia.
- George Washington: Washington was extremely close to both Morris and Willing, even staying in a house owned by Willing in Philadelphia after the Battle of Yorktown.
- William Bingham: Bingham, a "privateer" who amassed a fortune in the Caribbean during the war, married Willing’s daughter. Vague credits Bingham with potentially conceiving the idea for the Louisiana Purchase.
- The Baring Family: Willing’s daughter’s marriage linked him to Francis Baring, the principal merchant banker in London. This connection was vital for the Louisiana Purchase, which was financed by the Barings and Willing’s Bank of the United States, effectively funding Napoleon even as he prepared for war with Britain.
Legacy and the Fate of Robert Morris
The partnership between Willing and Morris eventually fractured over land speculation. While Willing remained conservative, owning about 100,000 acres, Morris leveraged himself to the "hilt," buying millions of acres of western land. When the market collapsed, Morris ended up in debtor's prison. In a "poignant moment," George Washington visited Morris in prison to have dinner and relive the moments of the Revolution they had "pulled out" together.
Vague concludes that Willing’s legacy is the transformation of the American economy. Under his guidance, the U.S. moved from a "pathless wilderness" to an economy with over 100 banks by 1820, eventually surpassing Britain as the world’s largest economy. Living into his 90s, Thomas Willing survived most of his contemporaries, witnessing the full maturation of the financial system he helped build. Vague summarizes him as the true "Father of American Banking".
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