--just as there are free market alternatives to the courts, the legislature, and law enforcement.
Most people want no part of that kind of thinking because the best justice money can buy is simply not very good justice. Governments do have a purpose. We want them to maintain order and provide an environment where laws are standard and contracts can be enforced. It's a function that must remain entirely separate from the market place --like religion. Nobody likes a religion that's primarily a business, or even one that's an agency of the government for that matter.
You’re clouding the issue. The free market can replace many government functions, but not the Constitution. Congress uses the Fed as a method. It is a legal monopoly. Might there not be a better way?
In the past bank clearing houses operated and were a de facto Fed, issuing currency (illegally, but they were never prosecuted or pursued for it) as needed during crises.
Your concern that the free market is some how polluted relative to the political market is prima facie nonsense. You know better.