Despite the various difficulties, changes are still happening quietly.
With the government mandating that taxes, military pay, and public works payments be made entirely in paper money, and merchants who refuse to accept it face severe penalties, people have no choice but to start using paper money.
The currency exchange has also given people increasing confidence, opening for gold exchange daily, with limits, but never failing to do so.
The news that someone had actually exchanged a stack of banknotes for shiny gold coins spread quickly.
"That paper... it really can be exchanged for gold!"
"My cousin exchanged five coins at Port Franklin, not a penny less!"
Trust began to build, and merchants discovered that carrying paper money was far safer and more convenient than carrying silver coins. After soldiers received their pay, their families could buy grain directly in town without having to go through the hassle of exchanging it. Even in remote villages, vendors began to accept paper money to buy salt.
Meanwhile, the issuance of gold mine revenue bonds attracted the wealthy, and public confidence soared when the first batch of gold ingots brought back from New World were openly displayed throughout the streets. Some began calling the paper money "gold notes," saying that it was "light as a feather, yet heavier than a mountain."
Although some older generations still stubbornly insist on using gold and silver currency, the younger generation has begun to accept it. The circulation of paper money in the market is increasing daily, and when giving change, people can skillfully pull out paper notes bearing the Northwest logo from their purses.
A silent monetary revolution is quietly taking root amidst skepticism and observation.
With the successful issuance of gold mine revenue bonds and the gradual establishment of paper currency credit, Lakeheart Town's financial pressure was suddenly relieved.
The Political Affairs Council swiftly injected funds into the military supply system, initiating a comprehensive military buildup and preparation for war.
The size of the standing army has increased by 30%, and new recruits are training day and night in training camps outside the city; the Cannon factory is operating around the clock, and new Cannons are rolling off the production line one after another; military rations and clothing reserves have doubled, and the docks of Port Franklin are loading and unloading supplies all day long, presenting a pre-war atmosphere.
Meanwhile, in a secluded area of the forest near Lakeheart Town, a weapons research and development base codenamed 51st District is quietly brewing a technology revolution.
Commissioned by the Intelligence Department, the Chemistry Department of Weiss Academy attempted the extremely unstable mercury fulminate route when developing new explosives. This gray crystal is extremely sensitive to friction and impact, and even a tiny impact can trigger a violent explosion.
However, after a series of experiments, it was deemed too dangerous and impractical.
But upon learning of this, Paul immediately ordered all samples and research data to be transferred to the 51st District.
"This is not waste," he said at the Technology conference. "This is the future of ignition."
He proposed an idea: to encapsulate a trace amount of mercury fulminate in a small metal cap and place it at the base of the cartridge. Upon firing, the firing pin on the bolt would violently strike the percussion cap, causing the mercury fulminate to explode and ignite instantly, producing a high-temperature flame that would then ignite the main charge, thus replacing the traditional matchlock and flint.
Compared to previous cardboard cartridges, this technology will give rise to true fixed-prime bullets, completely changing the way firearms are fired.
The 51st District's Technology team was initially skeptical—mercury fulminate is extremely difficult to control stably, and could easily explode during production or transportation if not handled carefully. But Paul personally participated in designing the protective process: sealing the percussion cap in a vacuum environment, using inert materials for isolation, and die-casting the cartridge case as a single unit to ensure safety.
After months of testing, the first batch of experimental percussion cap rounds was finally produced. In range tests, the new rifle fired nearly three times faster than a flintlock rifle, could still ignite reliably in adverse weather conditions, and had significantly improved accuracy.
When the news reached Lakeheart Town, the military leadership was greatly excited, as it meant that the Northwest Army would have an advantage in all-weather, high-rate-of-fire, and highly reliable light weapons.
Paul's original idea was to follow the historical trajectory and develop a weapon for the Alda army that was similar to the Minié rifle—a muzzle-loading rifled gun that used conical projectiles and was fitted with rifling, with a range and accuracy far exceeding that of smoothbore guns, and was the mainstream choice of the European powers in the mid-19th century.
However, the early appearance of the fire cap completely changed the course of technology.
"Now that the problem of reliable ignition has been solved, there is no reason for us to continue using smoothbore barrels," he emphasized at the 51st District Technology conference.
He drew a conceptual diagram of the new firearm on the blackboard: "With a percussion cap, if we still use a smoothbore barrel, it's like putting a steam locomotive on the wheels of an oxcart—the power moves forward, but the structure lags behind."
"The next-generation standard firearm must meet three conditions simultaneously. First, it must use a rifled barrel with helical rifling on the inner wall to make the projectile spin at high speed, greatly improving the range and accuracy. The effective range to the target must be no less than 400 yards, which is far greater than the 100-yard effective killing distance of the current flintlock smoothbore gun."
"The second priority is breech-loading design, abandoning the muzzle-loading mode, exploring breech-loading structures, shortening loading time, and increasing the rate of fire on the battlefield. If breech-loading sealing technology is not yet mature, muzzle-loading rifled guns can be used as a transition, but the ultimate goal must be breech-loading."
"Rifling should be machine-made, instead of relying on artisans to manually carve rifling—it's inefficient, costly, and inconsistent."
The current Alda army is equipped with a small number of rifled guns, but they are all manually drawn.
" The 51st District must immediately develop a rifling machine that uses water or steam power to precisely cut uniform rifling inside the barrel using a rotating cutter, so as to achieve standardized and mass production."
Just as Lakeheart Town was preparing for war, the Iron Hammer Clan arrived, inquiring about Dain's long absence.
Paul frankly informed Dain and Helson of the dire situation they were in, and that Dain and Helson might even have been killed, by the Stonemason Clan.
"You say Dain is being held captive in the territory of the Stonemason Clan? Did you see it with your own eyes? Or did you hear some terrified lackey spouting nonsense?" The old dwarf, draped in a dark red cloak and with a thick braided beard, slammed his fist on the table, his voice like a hammer striking an anvil.
"We have received no response. Helson is an official envoy from the Northwest, and Dain is an elder of the nobility. They have disappeared without a trace since entering the territory of Stonemason Clan, and the other side refuses to explain. This is not a reception, it is detention."
However, when Paul further explained that Lakeheart Town was prepared to take a hard line against the Stonemason Clan, the Iron Hammer Clan's envoys expressed strong opposition.
They still naturally stand on the side of the Stonemason Clan, who are of the same race. Although the fate of Dain and Helson is heartbreaking, it should not be a reason for Lakeheart Town to cause trouble.
But Paul did not change his mind.
The Iron Hammer Clan's envoys stated mockingly that even if the human army entered the dwarves' territory, it was destined to fail.
He gave Paul this warning: "Your firearms may frighten wild animals in the open, but in the valley a rolling stone can turn your entire army into mincemeat. In our tunnels, your gun barrels cannot even penetrate the rock walls, and you will not even be able to find a way to escape."