An interesting proposal, but a couple of considerations:
1. A Chancellor can already recruit an army for his own use. He's likely to have his own settlement for some manpower and can negotiate to recruit the rest, if he doesn't own a castle for example, from friendly nobles.
2. If the test game is any indication, military expenditures are going to be huge. With so many armies mandated already, there is a possibility that there will be no florins for building.
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