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1. You build new smithy.
2. Buy/send there some resources (iron, silver and so on).
3. Hire some workers.
4. Tell them to make some stuff like Silver Rings.
5. Wait a little.
6. Profit.
Another issue I can think of - is improper usage of Master Craftsman. If you hire him, but do not give him rights to hire workers and buy carts, then your new smithy will be unoccupied and thus won't produce anything :)
1. There are many seats in city/country hierarchy. Usually, a seat will be occupied by some npc.
2. But thing is - none of them are immortal. And thus these seats may become empty (without your interference, or "without your interference").
3. If the seat is empty, it is obvious, that someone has to fill it (not to mention good salaries and even more interesting possibilities that come with higher-ranked seats). That someone might be your character.
4. When the seat, available to you to pretend on, becomes empty, you (usually) recieve a notification. You may then go to the city hall registry and apply for an office.
5. But it won't be so easy. Usually, there are three more candidats and this is where things get interesting. In short, you must gather more votes than any of your competitors. To achieve it, you have many options in your disposal: you may bribe the appointer, you may give him a gift or write her a poem, you may sow a discord between your rival and appointer, you may... well, there are many options.
6. So how do you check, whether appointer will chose you, or not? Now, that's simple. First, you go to Office Overview -> Important people -> Office Candidacy. There will be listed both your appointers and competitors. When you hold RMB on someone's attitude bar, the other's people attitude bars will change and show their attitude towards chosen person. So you should check your competitors, evaluate their relations with the appointers and, if possible, make some "adjustments" to the picture.
I don't have the strength to write a whole manual in english, so I'll just give you a couple of tips. First of all, you may use items like Silver Ring. Such items increase your standing with different people. You will find it very useful in politics. Don't forget to improve your house too. It may give you a permanent standing bonus. And if there are several offices for you to choose from - just pick that one, where the appointer will be friendlier to you.
If your Master Blacksmith doesn't want to produce Silver Rings, well... check, if there are any silver in your smithy, or not :) Though it is iron, which is usually amiss (and when I say usually - I mean too damn often).
To allow or disallow Master Craftsman certain actions, you should use Master Craftsman Sertificate again (the same, you've hired him with). And if you are going to use Master Craftsman, don't forget to set the selling prices to 120-150%.
And, by the way, if you are new to The Guild, you may want to restart your game and choose a Thief, or Churchwarden occupation. They are much easier choices to play, than a blacksmith. Thief is literally swimming in money, but you'll need to play manually (his Master Craftsman is very, very ineffective). Churchwarden is a crafter like a Blacksmith, but earns much more money and his Master Craftsmen are more effective than Blacksmith's. The only downside - is that both Thief and Churchwarden are not big friends with the law (at least until you'll make thieving, burglary and necromancy legal in your city).
Thieves steal via pickpocketing and scout buildings to steal there. No production is needed but you must train your staff and you can sell the things you stole.
About a Baron becoming a Duke - I don't remember precise numbers, but you may see them in the manual. There were some other prerequisites, but I don't remember what were they and what rank they were applied to.
What about carts - yet again, you do not defend them yourself. You may hire an escort which will (try to) protect your cargo. If you own a garrison of any type, you won't even need to pay for escort. Otherwise they take a percent of cargo value (1/20 or 1/10 IIRC) but at least 50/100 coins for light/heavy escort respectively. Needless to say, that even an escort doesn't guarantee your safety: it may be too weak, or (which is infuriating) the robbers may just pick your goods (yes, all the 40 iron bars, heavy as hell) and run away with them. But with any luck you may even kill all the robbers and the Robber Baron will be forced to hire and train them anew.
By the way, if your protected carts are going to the same place simultaneously, they will merge in case of robber attack so will their escorts, giving you a hefty advantage.