Kalath pawns the three leather armors, a dagger, a spear, a kama, and a sword off for a total of 11.5 yen.
With that money he purchases the following items.
Monkey-bone Club (+1 monkey, tree) -- 2 yen -- the bone of a monkey, polished into a club
Lucky Rabbit's Foot (+1 rabbit) -- 2 yen -- a lucky rabbit's foot
Ki-rin Horn Spear (+1 ki-rin, +1 spear) -- 2 yen -- a spear of ki-rin horn
And has 5.5 yen left.
As he is completing the transaction, Kalath asks, "I've heard there are passages leading lower somewhere in the city. Any idea where those might be?"