Let's Abolish the Minimum Reserve Requirement

I, along with anyone who adheres to the Austrian School of Economics, would like to completely abolish every regulation in our currently unfree "free market." Not surprisingly, this includes abolishing the Federal Reserve which would ultimately give rise to commodity money (or "hard money"). This is because sans a government decree, no sane person would accept pieces of green paper backed by nothing as "money." They would expect it to be exchangeable for a tangible good, whatever it may be. Throughout most of history, money has been backed by either silver or gold for reasons too numerous to write. Money has also been as unconventional as bottles of water and tobacco.  

Since commodity money is backed by a physical good, it cannot be created out of thin air. This is unlike fiat money which is backed by nothing, enforced through government decree, and can be created out of thin air.

As a result, a minimum reserve requirement in a free society (one with commodity money) is redundant. Banks would more or less serve as a warehouse for people's money. Unhealthy or reckless banks that could not produce its deposits for its consumers would likely go out of business because of increased consumer vigilance. Therefore, it would be both irresponsible and unprofitable, in the long run, to not hold all deposits.