Does not the amount of currency, gold backed or otherwise, have to be at an amount conducive to handle the conversion of goods and services produced into it to eliminate barter?
in other words of an economy produces thousands of shoes and a thousands of loaves of bread, would not only a dollar in circulation be a problem to handle the conversion so that the shomakers can buy bread and the bakers shoes?
Non sequitur. You are going back a few centuries. If you are saying there is not enough gold, that is foolish. There is plenty of gold. Were the dollar to be pegged to gold at any rate the economy would become much more stable after a probably short but severe depression as the debt is retired or at least reduced to a small proportion of GDP.
That is not a likely situation. A hypothetical that sort of existed in the middle ages is not relevant.