In this case, those who have money would very powerful and could lend money at very high rates. That private banks create money out of nothing is a fact too little known amongst the public. Our national debt stands at over 200 billion pounds, and that of other industrialised countries is of similar magnitude. Their loans are not backed by any real wealth on their behalf. When you give your house or business as guarantee for their money, this money is not backed by gold, silver or tangible wealth.
Banks are intermediaries.
There are people in society who have accumulated wealth and there are also people who have ideas and ambition, but no funds. The banks link these people together for the mutual benefit of each. Money, as well as gold and silver, are valuable because we attach value to them. They have no inherent worth. It is an empty promise except for the fact that the govenment, with the central bank as lender of the last resort, is ready to bail out the banks should a run on their money occur.