NPC merchants reaction to the player

In my game I forgot to leave combat mode and noticed for the first time that merchants and bankers are frightened by me having a cudgel in my hand when talking to them...

Which is astonishing as, when I put the small cudgel away, they say nothing about the Large Brown Spider next to me...

Combat animals are weapons too.

I would suggest to:
1) have merchants and bankers react to combat animals (not deco animals like Mini-Elementals, Squirrels or a Goose) of the player just like to the player wielding a weapon,
2) have guards if they approach you anyway or you talk to them mention sheating your sword or the combat animal in peaceful cities, too.

"Hello citizen, would you please put away your Mace of Clobbering while you are in our peaceful town, so not to frtighten the good inhabitants? And while you´re at it - that nasty animal seems hungry and looking at the farmers cats - put that in your bag too..."