The precariousness of its value and the uncertainty of its fate continually operate, night and day, to produce this destructive effect. Every principle of justice is put to the rack, and the bond of society dissolved. Substitute hard money for paper, make the dollar an unchanging weight of gold, and we would have a real market system. Banks, as entrepreneurial ventures, are not insurable, except against poolable risks like fire and theft. No businessman can purchase insurance against failure, and in a free market, neither would any bank.
Deposit insurance is merely a government subsidy to the banks, and as such, illegitimate.
Without it, banks would be subject to market forces like every other business. They would have no privileges or immunities beyond the rule of law. Human nature is the same today as in the Victorian era, and so are the laws of economics. Now all we need is a Tom Paine to lead that revolution.