When they ordered raw materials and paid for labor, they agreed on prices in Gold Coins and silver coins.
Even after the civil war in Paratu broke out, the selling price of arms soared, and the costs of raw materials, processing, and wages also skyrocketed.
On the other hand, the main form of assets on the balance sheets of small and medium-sized arms workshops are actual military goods such as firearms, armor, lead ingots, and swords.
Debts are fixed, but assets are volatile. Once the price of arms plummets, small and medium-sized workshops easily fall into a deadly cycle of "inability to repay debts—forced liquidation—actual goods insufficient to cover debts—bankruptcy."
Especially now, when the embargo act was passed with shouts in the House of Commons, extinguishing the last hope, nobody would buy arms. If managed inefficiently, the inventory of firearms, armor, and swords in small workshops could become worthless overnight.
