Smaug woke up from an uneasy dream. There was a strange smell in his cave. And he couldn’t see the cup. Thieves! Such a thing had not happened since first he came to the Mountain! Smaug was furious. He thrust his head in vain at the little hole, and then he rushed towards the Front Gate. He wanted to catch the thief and kill him. He flew into the air and settled on the mountain-top in the green and scarlet flame. The dwarves crouched against the walls of the grassy terrace. They hoped to escape the frightful eyes of the hunting dragon.

“Quick! Quick!” Bilbo whispered. “The door! The tunnel! It’s no good here.” So they were going to creep inside the tunnel when Bifur cried: “My cousins! Bombur and Bofur – we have forgotten them, they are down in the valley!”

“We cannot leave them,” said Thorin. “Where are the ropes? Be quick!”

At any moment Smaug could find them near the cliff’s edge pulling the ropes. Finally Bofur came up, and still all was safe. Then Bombur came up, and still all was safe. And then they lifted some tools and stores. Just then the dragon came. They had just time to rush back to the tunnel, when Smaug came from the North. He licked the mountain-sides with flame, beat his great wings with a noise like a roaring wind. The ponies screamed with terror, burst their ropes and galloped off. The dragon swooped and turned to pursue them, and was gone. “That’ll be the end of our poor beasts!” said Thorin.

They crept further down the tunnel, and there they lay until dawn came through the crack of the door.

Smaug guessed from the ponies, and from the traces of the camps which he had discovered, that men had come up from the river and the lake; but he didn’t notice the door. He had hunted in vain till the dawn chilled his rage and then he went back to his golden couch to sleep.

When morning came the dwarves debated long on what they should do next.

“Now I will make you an offer,” said Bilbo. “I have got my ring and will creep down and see what Smaug is going to do. Maybe something will happen.”

The dwarves accepted the offer eagerly. Now Bilbo had become the real leader in their adventure. He had begun to have ideas and plans of his own. When midday came he got ready for another journey down into the Mountain. The sun was shining when he started, but it was as dark as night in the tunnel. “Old Smaug is tired and asleep,” he thought. “He can’t see me and he won’t hear me. Cheer up Bilbo!” He had forgotten or had never heard about dragons’ sense of smell.

Smaug certainly looked fast asleep, when Bilbo peeped once more from the entrance. But Smaug was only pretending to sleep! He was watching the tunnel entrance! Hurriedly Bilbo stepped back. Then Smaug spoke.

“Well, thief! I smell you and I hear your breath. Come on! [83] Take something again!” But Bilbo answered, “No thank you, O Smaug the Tremendous! [84] I did not come for presents. I only wished to have a look at you and see if you were really as great as tales say. I did not believe them.”

“Do you now?” [85] said the dragon a bit flattered.

“Yes, I do,” replied Bilbo.

“So who are you and where do you come from?” asked the dragon.

“I come from under the hill. And I am unseen. I am the clue-finder, the web-cutter, the stinging fly. [86] ”

“Lovely titles!” said the dragon.

“I am the guest of eagles. I am Ring-winner [87] and Luck-wearer; [88] and I am Barrel-rider,” went on Bilbo.

“That’s better!” said Smaug.

Smaug did not understand everything, but he thought that he understood enough. “So it’s about Lake-men! They have a lot of barrels,” he thought.

“Very well, O Barrel-rider!” he said aloud. “Let me tell you I ate six ponies last night and I will catch and eat all the others before long. [89] In return for the excellent meal I will give you one piece of advice: don’t have business with dwarves!”

“Dwarves!” said Bilbo in pretended surprise.

“Don’t talk to me!” said Smaug. “I ate the ponies and I smelt the dwarves. Did you get a good price for that cup last night?” he went on. “You got nothing at all! Well, you see! Don’t believe them!” Bilbo was now beginning to feel really uncomfortable, but he spoke again.

“You don’t know everything, O Smaug the Mighty, [90] ” said he. “Not gold alone brought us here.”

“What is it then?”

“Revenge,” Bilbo said.

Then Smaug laughed: “Revenge! My armour is like shields, my teeth are swords, my claws are spears, and my breath is death!”

“I have always understood,” said Bilbo, “that dragons were softer underneath, especially in the chest.”

The dragon stopped boasting. “Your information is out of date, [91] ” he said. “I am protected above and below with iron scales and hard gems. No blade can pierce me.”