They can climb up a few nearby trees but they are surrounded. The wolves and goblins are allies and as it turns out, the wolves are waiting in this forest-glade because they have planned a joint-attack with the goblins. Of course, the wolves cannot carry out their attack on the town because the goblins have not shown up at the appointed hour‹and this is because they are mourning their leader and looking for the dwarves. Gandalf knows that he must do something and so he starts a fire in the midst of the wolves, attracting the attention of the Lord of the Eagles. Goblins arrive on the scene to mock the pained wolves and in a clever move, they burn fires around the trees in order to trap the dwarves. The Lord of the Eagles arrives and carries Gandalf away, just in time, and other birds come and save the dwarves and Bilbo. And so, the chapter ends with Bilbo lodged in a safe place, sleeping soundly. Analysis:

In terms of character development, Gandalf's conversation is interesting because it puts his limited powers within focus. His knowledge of the future‹of what is fated‹is implied by phrases like "If we can only find him [Bilbo] again, you will thank me before all is over." Permitting suspense, but only for a time, Gandalf knows that Bilbo is able to save himself when Gandalf no longer can save the hobbit. The introduction of the "Lord of the Eagles" initiates Biblical allusions, but more important, the relationships between various species are gaining some clarity. The eagle is a symbol representing keen-sight, strength and endurance. And after the descent into the caves, the ascension with the eagles is a welcome contrast. While sleep brings rest, it does not bring unconsciousness for Bilbo. As these themes develop, we find that Bilbo's nostalgia overpowers his need for immediate shelter. Instead of enjoying his present shelter, he longs for his old home. His sleeps "on the hard rock more soundly than ever he had done on his feather-bed" and in physical terms, we can understand the juxtaposed images (hard rock, feather-bed). But what we find is that, in Bilbo's dream, the feather-bed is a metonym that stands for his entire house and the comforts of being at home. As much as his body needs sleep, his spirit needs home: "all night he dreamed of his own house and wandered in his sleep into all his different rooms looking for something that he could not find nor remember what it looked like." This is certainly a contrast to the rambling through the caves and it strengthens the search and "quest" motif of The Hobbit.