Real Bills Doctrine
The Real Bills Doctrine states that issuing money in exchange for real bills is not inflationary. That was the decried doctrine of the old bank directors of 1810. It stated that "as long as a bank issues its notes only in the discount of good bills, at not more than sixty days, it cannot go wrong in issuing as many as the public wants." The Doctrine is debated because it is in direct opposition to the Quantity Theory of Money, which states that "money supply has a direct, positive level with the price level."