The problem only starts with the free banking itself. Free banking isn't much good if there are property transfers (not the money trades, now) in excess of $400 in value. Why?

What if you want to sell your house for $200,000. You find a buyer, and you both go through some alternate form of banking. The deal is done. Value is exchanged.

Suppose the buyer wants to register the deed of the property he just purchased. Yet, no money has changed hands. It wasn't a gift, was it? What about the sales tax? The exchange is flagged. There might be problems when the banking system realizes that an alternate form of banking must have been used.

One answer is to transfer all your property to private trusts, one trust for each piece of property. An entity you control can be the Trustee of each trust. Then, simply change the Controlling Officer of the entity to the name of the Buyer at the time of "sale." A bit of a hassle, but a method to keep from flagging property transfers because the property wasn't transferred to a new owner. Rather the "owner of the owner" was transferred, so to speak.