Bilbo also wears a coat, forged by elves of a material called mithril and he admits that he fills "magnificent." After Bilbo's heroic leadership has brought the dwarves to the treasure, Thorin announces himself as King and calls an end to the days of Smaug's dominion. Analysis:

The tone may be summed up in the sentence: "The dark hall was filled with a melody that had long been silent." But the melody is the rejoicing of the young dwarves, Fili and Kili. Thorin does not become a villain but his character degenerates into greed and unfortunately, there will be battle at this mountain. There is an awful irony in the title of the chapter "Not at Home" and Thorin's hard rebuke: "Don't call my palace a nasty hole! You wait till it has been cleaned and redecorated." First, we consider the question of whether this is Thorin's palace or Smaug's home. Then, there is the fact of the hobbit's nostalgia for his home in a "hole." Finally, as we will soon see, a palace is a piece of architecture; what Thorin requires is a court. The banquet halls of the epic sagas were established with social contexts that required war. Perhaps the question "where was Smaug"‹a question marked by the "gathering of very many birds" foreshadows the requisite battle to come. Chapter Fourteen: Fire and Water

The lake-town of Esgaroth is the victim of Smaug's terror, for the information that he learns from Bilbo gives him reason to believe that they are involved in the theft of his cup. Watchmen see fire in the distance but their warnings go unheeded. Perhaps the lights are a sign of the King under the Mountain, who is again forging gold, according to the songs and legends. Smaug approaches and the people are in a state of combined worship and terror. Smaug breathes fire down upon their city but those who listened to the grim-voiced man had time to collect water to mitigate the damage. They also destroy the bridge that links the island city to the mainland and in this, they are able to halt Smaug's advance. His fire is quenched by the water but that little harms him, nor do the arrows shot from the city garrison. The Master of the city seeks to save himself and his fortune but there is a hero on the scene. Bard, the grim-voiced, grim-faced man, is willing to challenge Snaug and he has help from a messenger bird, called a thrush. The thrush relays information that Bilbo discovered while in Smaug's lair: the hollow of Smaug's left breast is not plated with his red-gold armor. When Bard strikes this spot, Smaug falls dead, his massive body crushing the city of Esgaroth. The survivors seek Bard as their new king but Bard provisionally declines the offer, though he intends to establish his own city.