We're together with the idea that the words "collateral" and "money" have two different definitions. We're also both aware that borrowing money is the process of turning collateral into money. What I'm not sure of is whether your question was rhetorical (like you're scolding me for the sins of the banker), or you were actually seeking information (like you can't figure out how the bank draft get's prepared in our hypothetical First National Bank of Gold). Which ever it is, please bear in mind that the processes I describe are what actually happen in everyday life, are understood and approved by the overwhelming majority of the population, and represent an advance of civilization to level higher than ever seen before in the history of mankind.
I am questioning where the bank gets the second $100 to give to you. It only had $100 in cash and that was already lent out. It doesn't have another $100 to give you. I understand that the process you describe is what happens everyday, but I would suggest that the process is NOT understood and is only approved by the population because they don't know what is really happening and it CERTAINLY doesn't make it moral. It works today because all banks are part of the system and can legally create new money like this out of the blue. When specie was money, they ability to just print more didn't exist and that is what the bank runs and panics were all about.