> fractional-reserve-banking

You are confusing this with something else. If there was no fractional-reserve-banking under the gold standard, then why did bank panics happen? If the bank had $1 million loaned out, and also had $1 million of gold in its vaults, then why would anyone panic? Yet bank panics were common. And that's because the banks all engaged in fractional-reserve-banking -- if they had $1 million in gold in their vaults, they would make loans worth $5 million.