That quit being the case on December 23, 1913.
So where does the money to pay the interest on the first dollar borrowed come from? No where is the answer.
Why do you think ALL Central Banks have a targeted goal of inflation? Because the system has to keep creating new money by issuing loans in order to fund the interest payments due on past loans. Why do you think the system freaks out of deflation?
Not quit, if you want to understand how "money" is created you should read this booklet published by the FRB of Chicago.
https://www.scribd.com/document/351571733/Modern-Money-Mechanics-pdf