[Formendacil]

An important thing to remember is that the Shire was the greatest economic force in Eriador at the moment. In the long run it might be more costly to isolate the Shire in the way that Elessar was ordering, but at that point, it was essential to win over the trust of the Hobbits.

With the exception of the Fellowship and a few Bree-ward travelling Bucklander, the Hobbits knew the Big Folk pretty much from Saruman's marauders. And the Hobbits didn't have a great opinion of the Big Folk to begin with, if one goes by the Prologue.

If the re-established Arnor was to be successful in its early years, it needed the aid of the Shire to supply food and goods. Quite simply, Bree, Rivendell, and the Ered Luin dwarves and Elves aren't nearly enough of a force to support them, and Rohan and Gondor are quite distant. In this atmosphere, the good will of hobbits is essential.

And although Sam, Merry, and Pippin will soon fill the top positions in the Shire, one has to remember that the Shire didn't REALLY have a government, and if the Hobbits decided that they didn't want to trade with the Big Folk, it's unlikely that Captain Merry or any of the others could convince them otherwise.

So Elessar's move makes very good sense for the establishment of a new Arnor. Ultimately it might become a rather bad thing, but at the time I would say that it was well-merited, in that it did a very good job of gaining the hobbits' trust.