A privately owned central bank is no better. It takes away all the checks and balances in free banking that keeps banks (even with fractional reserve banking) from over inflating (or inflating at all). Fractional Reserve Banking has been around since the moment bankers realized people didn’t come in to collect their gold: they issued fraudulent receipts for gold they didn’t have. The problem is government allowed this practice to continue and actively encouraged it.
Economic necessity produced fractional reserve banking. It became obvious that it was a source of great wealth both for individuals and society as a whole. Removing and storing gold decreases the money supply so drastically that economic growth becomes dependent upon random events.
When and where banking was introduced it created economic and financial powerhouses. To claim otherwise is just a misreading of history.
Removing this ability is impossible today because it would create and sustain a world wide depression that no democratic society could survive.
The key is maintaining confidence in the money and tie the growth rate of the money supply to reasonable targets.