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.
Oh come off it. You trying to say nobody who's ever seen "It's a Wonderful Life" was able to understand why the Bailey Savings and Loan didn't have enough money to give every single depositor his savings in cash all on the same day, you think everyone was rooting for Potter and that the consensus was that the George Bailey ideal was not moral?