Ideas of another dead socialist

[GoodCallYouWin]

"I thought the fed was created to be a lender of last resort? Wasnt that because there were a lot of runs on the bank? "

In a free banking system, no bank would be able to practice fractional reserve banking without going bankrupt quickly, so there would be lots of runs on banks that attempted fractional reserve banking, but banks that practice 100% reserve banking obviously cannot be run on (because they have everything there).