On the issue of Fractional reserve banking being a fraud or not, I just want to point out that we individuals would go to jail if we started lending several times money people entrusted to us. But never mind.

I'm just going to say that FRB allows banks to increase M3 and to profit for that liquid creation of money. Taking in account that M3 is several times bigger than M1 (mainly, notes and coins), even taking in account that a big part of M3 is created directly by the central bank (by crediting banks with money on the accounts they have in the central bank) we are still allowing private corporations to create a huge part of our money.

Therefore, we are depriving the State/Central bank of the power to create all the money that is created by banks. If FRB was tighter or inexistent, a huge (or all) part of the M3 created by banks would be created by the central bank and given out to public entities without the risk of creating inflation. So less taxes for all of us.

Basically, part of the taxes we pay go to support Fractional reserve banking and the profits given by it to banks.