Actually, this is not a problem at all and no moeny has been created in your scenario. Only, no, your money is longer in the bank, it is out on loan and due back at a certain date. You cannot retrieve your money until that date. This is 100% asset backed banking.
What happens today goes more like this....I deposit the $100. Due to fractional reserve laws, the bank can use my 100 to loan out 10 times as much (actually up to 100 times or more now). So I still think my 100 is there, but actually the bank has loaned out 1000 backed by only my 100. Then that thousand gets deposited somewhere else and is used to create loans for 10 times that amount. This multiplier effect is what causes the massive money supply growth.
It is my contention that this is immoral and fraudulent and should be illegal. This is what caused the inflation/deflation spike that you see in the pre-WWI times. It is not a standard part of the system. Neither is govt usuring its power to create fiat monies to finance war. An economy based upon a 100% gold backed monetary system is not a panacea, it is however, the most honest and market driven and provides for the most efficient growth of real wealth.
I went over some of this in posts 192 and 194 above.
Most people would say that when we see a stack of $20 bills on the table, then we're all willing to call it money. Anyone who says it isn't --fractional reserves notwithstanding-- is not believable. In fact, if I offered you this stack of bills, I honestly believe that you would consider it every bit as valuable as money-- especially after you used it to purchase gold.
When I talk about morality I prefer to give consistency a higher priority than convenience. Your views appear to be convenient and not consistent. I'm sure that you consider yourself to be very moral. Your posts seem to infer that you consider your views more moral than mine. I must be missing something --please let me know what it is.