“You put your worst cause last and in the chief place,” Thorin answered. “To the treasure of my people no man has a claim, because Smaug who stole it from us also robbed us of life or home. The treasure was not his. The price of the goods and the assistance that we received of the Lake-men we will fairly pay. But we will give nothing under threat of force. While an army lies before our doors, we look on you as foes and thieves.”

“But still my other claims remain unanswered,” replied Bard.

“I will not discuss any questions, as I have said, with armed men at my gate. And if you would like to speak with me again, first send the elves away to the woods where they belong, and then return, laying down your arms before you approach the threshold.”

“The Elvenking is my friend, and he has helped the people of the Lake,” answered Bard. “We will give you time to change your mind. Gather your wisdom before we return!” Then he went back to the camp.

In a few hours the banner-bearers returned and cried:

“In the name of Esgaroth and the Forest, [105] we speak to Thorin Thrain’s son Oakenshield, calling himself the King under the Mountain, and we ask him to consider well our claims, or be declared our foe. He should give one twelfth portion [106] of the treasure to Bard, as the dragon-slayer, and as the heir of Girion. [107] From that portion Bard will himself contribute to the aid of Esgaroth; but if Thorin would like to have the friendship and respect of the lands about, then he will give also some gold for the comfort of the men of the Lake.” Then Thorin shot an arrow at the speaker. It got into his shield.

“Since such is your answer,” the speaker called in return, “I declare the Mountain besieged. [108] We will bear no weapons against you, but we leave you to your gold. You may eat that, if you want!”

So the dwarves were left to consider their situation. Most of them agreed with Thorin except perhaps old fat Bombur and Fili and Kili. Bilbo, of course, didn’t like what had happened.

“The whole place still stinks of dragon,” he said to himself, “and it makes me sick.”

Now the days passed slowly. Many of the dwarves spent their time piling and ordering the treasure; and now Thorin spoke of the Arkenstone of Thrain, and told them to look for it in every corner. “The Arkenstone of my father,” he said, “is worth more than a river of gold, and to me it is beyond price. I will revenge anyone who will find it and hide it.”

Bilbo heard these words and he got frightened. The stone was wrapped in an old bundle that he used as a pillow. But he did not speak of it, because he started thinking of a plan.

Soon the ravens brought news that Dain and more than five hundred dwarves, hurrying from the Iron Hills, were now within about two days’ march of Dale, coming from the North-East. “But they cannot reach the Mountain safely,” said Rac, “and I fear there will be battle in the valley. I do not think that the dwarves will overcome your foes. Anyway, winter is coming. How will you live without the friendship of the lands about you? The treasure can become your death, though the dragon is no more!”

But Thorin was not moved. “Winter and snow will bite both men and elves,” he said. “With my friends behind them and winter upon them, they will perhaps talk in a different way.”

That night Bilbo made up his mind. [109] The sky was black and moonless. He went to a corner of an inner room just within the gate and drew from his bundle a rope, and also the Arkenstone wrapped in a rag. Then he climbed to the top of the wall. Only Bombur was there, because it was his turn to watch.

“It is really cold!” said Bombur.

“It is warm enough inside,” said Bilbo.

“But I have to stay here till midnight,” said the fat dwarf.

“I will take your turn for you, [110] if you like. I don’t feel sleepy tonight.”

“You are a good fellow, Mr Baggins, and I will take your offer kindly. If there is anything to note, rouse me first! I will lie in the inner room to the left, not far away.”

“Off you go!” said Bilbo. “I will wake you at midnight, and you can wake the next watchman.” As soon as Bombur had gone, Bilbo put on his ring, fastened his rope, slipped down over the wall, and was gone.