War Ensues

After Mr. Baggins' confrontation with the dragon, Smaug flees angrily, destroys much of the Lonely Mountain, leaving the dwarved trapped inside. While the dwarves find their way out of the gate and into a watchpost, the dragon goes the Lake-town of Esgaroth, and causes chaos and near oblivion to the village. Many men gather in an attempt to fight the dragon, but eventually most flee as they convince themselves that it is hopeless. It is in Chapter XIV, Fire and Water, that we meet Bard, a grim man, leader of the army and archers, and heir to the throne of Dale, who valiantly stays to fight the dragon. Soon, after all men have fled, a thrush, the bird that had heard Bilbo talking to the dwarves in the mountain, tell Bard the information that Bilbo obtained form the dragon.

"Wait! Wait! The moon is rising. Look for the hollow of the left breast as he flies and turns above you! And while Bard paused in wonder it told him of tidings up in the Mountain and of all that it had heard."

Bard shoots his arrow, strikes were told, and Smaug wails and falls defeated.

Back in the watchpost, the dwarves and hobbit know nothing of the events of that past night. But the same thrush comes and informs them that the people of Lake-town believe they are dead, also they are infuriated that the prophecies about them slaying the dragon were false, and with Bard as their new leader are marching up to the Mountain to claim the treasure. They have also sent for the Woodland elves for aid in reconstructing the town, and they accompany them up the mountain. 

"Your own wisdom must decide your course; but thirteen is a small remnant of the great folk of Durin that once dwelt here, and now are scattered far If you will listen to mu counsel, you will not trust the Master of the Lake-men, but rather him that shot the dragon with his bow. Bard is he, of the race of Dale, of the line of Girion,; he is a grim man but true. We would see peace once more among dwarves and men and elves after the long desolation; but it may cost you dear in gold. I have spoken."
Then Thorin burst forth in anger: Our thanks, you and your people shall not be forgotten. But none of our gold shall thieves take or the violent carry off while we are alive."

So Thorin asks the bird to send for help in the north-east where his kin lay in the mountains. Only Bilbo sees the tremendous flaws in his plans and wishes dreadfully that all would just end in peace.

Bilbo had taken the Arkenstone, the precious stone descendant from Thror. This act is seen as one of the final stages of Bilbo's evolution into a burglar. He later escapes the defended Mountain, goes to the camps of men and elves, and offers it to Bard and the Elvenking. 

"Things are impossible. Personally I am tired of the whole affair. I wish I was back in the West in my own home, where folk are more reasonable."

On the way of Bilbo's return, Gandalf spots him, "There is always more about you than anyone expects! There is an unpleasant time just in front of you; but keep your heart up! You may come through all right."

Next day, the men and elves present the Arkenstone, and offer it for trade of their own share of treasure. Thorin is dumbfounded and furious and asks how they came about the stone.

"I gave it to them!"

After Bilbo confesses, Thorin banishes him infuriated. "More than one of the dwarves felt pity and shame at his going." Then just when the dwarves of Dain arrive and war is about to begin Gandalf warns all that they must join forces, for the goblins had heard of the downfall of the dragon, and infuriated by the death of the Great Goblin, they were coming to destroy all and take the treasure. So The Battle of The Five Armies takes place. Many die, but an alliance like no other is formed between the different races. Eventually even Thorin and his men come to aid. Before all hope seems to be lost, the eagles arrive, and Bilbo is knocked out by a stone that fell on his helm. The next day, Bilbo wakes up and is taken to Thorin, whom is on the brink of death. The two restore peace before Thorin dies. Kili and Fili also died, and members of Thorin's company weep a great deal. The rest of the Chapters include Bilbo's return home with Gandalf.

 The importance of the war include Thorin overcoming the greed that he had developed after spending so much time with his treasure. Also the powerful alliances that can be formed between many different groups of people, and the victory and good that eventually results from such friendships. If Gandalf had not stopped the battle, the goblins would surely have come upon them all and an immense tragedy would have occurred. 

Bilbo's great deed as a burglar is another key element in the survival of the races and the outcome of the war. Had he not taken it upon himself to defy the dwarves and betray Thorin by taking the Arkenstone to his enemies, the fellowship would have never been formed, and the fate of Middle-earth would have been very different in the end. Thus, Gandalf's wisdom is comfirmed, and the wizard reassures Bilbo that surely it wasn't luck that aided him.

"Surely you don't disbelieve the prophecies, because you had a hand in bringing them about yourself? You don't really suppose, do you, that al your adventures and escapes were managed by mere luck, just for your sole benefit? You are a very fine person, Mr Baggins, and I am very fond of you; but you are only quite a little fellow in a wide world after all!"
"Thank goodness!" said Bilbo laughing, and handed him the tobacco-jar.