Chapter 16

As the group awaits the battle, Thorin looks for the Arkenstone. Bilbo decides to work toward maintaining peace between the men and dwarves. Bilbo takes the Arkenstone and goes to Bombur, who is on guard during the night, and asks him to take a break. Bilbo tells him that he will watch on his behalf. When Bombur leaves, Bilbo puts on his ring of invisibility and goes to the elves.

Upon reaching the cave, Bilbo gives the Arkenstone to Bard and asks him to use it for negotiating peace with Thorin. The elves offer to protect Bilbo from the dwarves, but he refuses their help. As Bilbo leaves camp, Gandalf reappears and lauds his decision.

In this chapter, too, we see that Bilbo prefers peace over war. He had stolen the Arkenstone for himself but decided to give it up for the greater good of the company. Yet again, we see his cleverness in devising plans to aid the group.