"prohibits the creation of private money through the establishment of lending credit against depository receipts, sometimes referred to as ‘fractional reserve banking’."
Sec. 402 (f) (2)... Page 41 of the PDF.
Unrealistic, I think, to try to prohibit fractional reserve banking.
It is like trying to prohibit gunpowder, or the spread of nuclear weapons, or any technological advance. It is like trying to prohibit the sunrise.