There's a few +1 shortswords hanging around, though I can't remember where I got them. If you get the sussur bark you can make a +1 dagger, too, so there's at least enough for two characters to dual wield.
How were you able to craft the dagger? Was it at one of the Anvils? I've tinkered with them a ton but can't seem to get them to actually do anything.
