The old system does derive the replacement axiom. Here is a syntactic proof using only its axioms, modus ponens rule, and the permitted deduction theorem for propositional logic.
First derive explosion. From and , the first axiom gives . The old third axiom then gives , and modus ponens rule with gives any desired .
Next derive the classical reductio rule. Suppose derives both and . Let be the theorem , obtainable by applying the deduction theorem for propositional logic to the identity derivation from assumption . Explosion under gives , so the deduction theorem for propositional logic gives . The old third axiom with , yields . Since is a theorem, . Thus a contradiction under permits deriving with that temporary assumption discharged.
Now assume and , and temporarily also assume . Modus ponens rule gives , contradicting . The just-proved reductio rule discharges and gives . Finally discharge and by the deduction theorem for propositional logic:
No propositional completeness theorem is needed in this derivation.

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