You shouldn’t need enough gold to back every single banknote in circulation. The purpose of it is to instill confidence in the currency and fiscal discipline in government spending policies, with enough gold coinage held in reserve to supply reasonable demand.
Well-stated.
“Socialism Is Legal Plunder” - Bastiat 1801-1850
“Watch money. Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.” - Ayn Rand