Crime Against Humanity: Fractional Reserve, Namely Legalized Counterfeiting, 15

Let’s save for a little while the answer to this question, and take the cue from this perplexity to move back to Example Island and witness the second of the two facts proving how you’d better take into consideration as something more than just a mere hypothesis that the awesome colonnade of the bank’s façade is but a house of marked cards and the banker behind it has less clothes than a king with no clothes.
Suppose there are ten banks on Example Island, happily counterfeiting non−existing money, but all of them abiding by their self−imposed limit expressed as the “fractional reserve” ratio, say, 90 percent. Every day bank customers exchange non−existing money by bank transfers, cheques, online payments, etc., so the money created out of nothing by each bank ends up in the other banks, too, because exchanges occur between customers of all banks. Let’s draw the journey of any unit of money, in stop−motion and substantially rather than formally: Mr. A has one unit of money in his account in Bank 1, whose statement attests: “I, Bank 1, owe Mr.A one unit of money.” Mr. A writes a cheque and gives it to Mr. B, and the cheque attests: “I, Bank 1, owe Mr. B one unit of money.” Mr. B endorses that cheque to Bank 2 and deposits it in his account in it, whose ensuing statement attests: “I, Bank 2, owe Mr. B one unit of money.” Bank 2 keeps the endorsed cheque which now attests: “I, Bank 1, owe Bank 2 one unit of money.” As a result, all banks pile up claims against the other banks, whose equivalent parts get cancelled in a so−called clearing house: one unit of money owed by Bank 1 to Bank 2 and one owed by Bank 2 to Bank 1 cancel each other. The inbalances of credits and debts among banks tend to be negligible and temporary, so bankers accept them as such. Indeed if only they wished, bankers may demand that their fellow bankers paid all their debts in cash instead of clearing them, but they favour abstaining from such a demand because in doing so they would commit collective suicide.