Mercenary modifications

[Redmeth]

As for the cap, I haven't had time to understand the implications, but I noticed that many times the AI just keeps the money in the "bank", waiting for an enemy to exterminate one of their cities and reap a fat reward. So, its better to let them have just enough to produce lots of troops..

There is no connection between the funds a faction has and the money you or any other factions gets from exterminating a city. The income received from exterminating is solely based, as far as I can tell, on city and thus number of people killed, the bigger and more populated the city is the more money you get. The money is not deducted from the faction the exterminated city belonged to.