There may be no specialized merchants in the town hall that have melee weapons. I think that's by design, as you are supposed to either find them during adventuring or by crafting them. You can easily make a decent dagger from a butter knife or paper knife through crafting, for instance. But some of the merchants (check Anna in the pub or Esmeralda in her house for example) have some. There's also a ship captain down at the harbor who has a decent selection of weapons. And of course, you can trade with every character you see and some of them may have what you want.
