> The fallacies of the RBD are three:  a particular bill may be 
discounted multiple times, creating multiple increases of bank notes 
(or deposits); <
 >Neil T. Skaggs

One bill can pass through many hands, and discounted several times, 
but this does not multiply the notes; it remains one note.
A exchanges an IOU note with B, who exchanges it with C.
It remains one note.

 > ... in the absence of an anchor such as gold, causes prices to rise;

Yes, so there needs to be such an anchor,
real bills in combination with commodity money (e.g. gold).
This is not an argument against real bills, but against fiat money.

 > the doctrine ignores the rate of interest charged on bills:  if 
the bill rate is below the expected rate of profit, the incentive to 
borrow more exists.<

But the "borrowing" has the collateral of the goods produced; if the 
collateral is lacking, others will not accept the bill.  The bill 
issuer will lose reputation capital and not be able to issue any more.

Fred Foldvary