Short history of money
In the early days people traded real goods for real goods. This was called barter. If you wanted to sell sheep and needed fish, you had to find someone offering fish while needing sheep. Quickly people found out that it was handier to have one or more dominant goods that were desired by everyone. More than often the market, the people, choose gold. Apart from a store of value gold also became a measure of accounting. People who accumulated gold and therefore wealth often needed to store the gold. Banks were used for that. Banks also provided payment services. Bank notes came into circulation, in the beginning backed by 100% gold. Later on banks started to deceive people through the issuance of more notes than the available backing of gold. Fractional reserve banking, the basis of our modern financial system, was born. But in essence, it's fraud. You cannot loan out money that is stored with you. If someone asks you to guard his car, you're not allowed to give it to someone else. The same goes for money. Fractional reserve banking made the money supply grow. Ludwig von Mises and Friedrich Hayek concluded that it leads to business cycles, to inflation, malinvestments, wars and to the postponement of the free and moral society.

Central banks
Because of fractional reserve banking, banks were vulnerable to bank runs. As soon as people found out that a bank had little cash reserves and bad investments, a run could easily destroy a bank. Numerous runs in the 19th centuries and early 20th century are proof of that. In order to prevent this central banks were created, as well as deposit insurance. Although these are often portrayed as measures to protect the consumer, in effect they protected the banks. Profits are privatised, losses are taken by society, as was demonstrated at the end of 2008. Instead of creating central banks, politicians should have forbidden fractional reserve banking.

Conclusions
Fractional reserve banking = fraud
Central banks and deposit insurance = legalised fraud

A free society should not allow fraud. People should not be deceived. Sound money would mean a 100% gold or other commodity backed money system. Real money for real goods. Value for value. Banks should be allowed to go bust. Fractional reserve banking should be forbidden. Central banks should be ended.