The Lisp compiler tells you:

    (defun substitute-in-replacement ($-value replacement)
      (cond ((null $-value) replacement)
            ((null replacement) ())
            ((eq (car replacement) '$)
             (cons $-value (cdr replacement)))
            (T (cons (car replacement))
               (substitute-in-replacement $-value (cdr replacement)))))

    CL-USER 5 > (compile 'substitute-in-replacement)
    ;;;*** Warning in SUBSTITUTE-IN-REPLACEMENT: CONS is called with the wrong
    ;;;     number of arguments: Got 1 wanted 2
    SUBSTITUTE-IN-REPLACEMENT

Lisp compilers able to present these error messages are in use since more than 40 years. Common Lisp has them since day one.