Stephan Kinsella and Steve Horwitz have both published a suggestion from Toby Baxendale, on a type of bank account that 100% reservers and fractional reservers might be able to agree on the legitimacy of:
This manager says this account is a timed deposit account in nature i.e. your money is locked away for at least a month, 3,6,9 18 months X number of years, but the bank will allow instant access , by exception for the liquidity that it keeps in reserve all the time. However, should there be too much call on liquidity, the bank reserves the right to point out that you the depositor are actually a de jure timed depositor / creditor to the bank for at least a month, 3,6,9 18 months X number of years and are going to he held to the time period you freely signed up to.
In addition to the option clause banks might also offer (and historically did offer) a “notice of withdrawal” clause, specifying that their customers were required to give 30 days notice prior to making a redemption claim. The fact that this clause existed (to protect the bank from a legal point of view if it were ever to suffer a liquidity crisis) does not mean it is always invoked, and banks could routinely not enforce this rule and satisfy immediate redemption requests.
(Note that I've received feedback on that paper suggesting that many US fractional reserve savings
accounts still do carry withdrawal clauses.) To repeat what I've said previously:
... in my theoretical working paper about sound money (and the corresponding policy proposal) I talk about how option clauses and notices of withdrawal are examples of contractual provisions that make anti-fractional reserve arguments mute. I intend for this to unite the two schools of thought, and show how 100% reserve arguments can be dealt with seriously. My concern is to find solutions that all Austrian school economists (and indeed all "good" economists) can get behind and support, rather than to further unnecessary antagonism.
I'm glad Toby shares that view, and encourage him to read (and cite) my paper!