Arcane Topic Warning: Part the Third

[Zigûr]

Originally Posted by Inziladun

Also, there is a reference in The Hobbit that leads me to believe hobbits were used to currency.

There are several, in fact:

"Bilbo could never remember how he found himself outside, without a hat, a walking-stick or any money, or anything that he usually took when he went out" (p. 29)

"I have come without my hat, and I have left my pocket-handkerchief behind, and I haven't any money." (p. 30)

In regards to trade between Hobbits and Dwarves, I wonder if the Dwarves were more buyers or sellers. It seems to me that the Hobbits were accomplished enough with the simple machinery they used and the construction of their own dwellings; and that the primary produce of value to the Dwarves would have been food, pipe-weed and the like. One can perhaps imagine them selling to the Men of Dale in the East and buying from the Hobbits in the West. I'm no economist though so I personally can't speculate too much.