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The Merchants of Middle-earth - Page 2© Michael Martinez
The Elven equivalents for tharni and castar were canath (from kanat-, 'four') and mirian (from mir, 'a jewel or precious thing'). "The Etymologies" provides a root-word, mbakh, meaning 'exchange', from which words for 'trade', 'tradesman', and 'commerce' were derived in Qenya (the precursor to Quenya). There were also words for 'pedlar' and 'ware' in Noldorin (Sindarin).
That the ancient languages of Middle-earth acknowledged trade and commerce implies that Tolkien gave some thought to the economic activities of the early Elves and Dwarves, although he did not provide details of these activities. We don't actually know if money was used in Beleriand, for example, although Cirdan reportedly traded or gave pearls to Thingol, who in turn supplied them to the Dwarves of Ered Luin (the Firebeards and Broadbeams of Nogrod and Belegost).
The Dwarves built roads throughout Middle-earth early in its history. The Dwarves of Ered Luin built one or two roads leading to Doriath, and the road eventually extended all the way to Nargothrond (which they helped to build). Dwarven trade passed through the Dor Caranthir, and Caranthir is said to have become wealthy because of this. So he presumably charged tolls or fees of some sort in exchange for ensuring the roads remained safe. He may also have supplied the Dwarves with food, since in The Peoples of Middle-earth we are told the Dwarves did not grow their own food.
The Dwarves only helped build two cities in Beleriand of which we know (Menegroth and Nargothrond). The Noldor had their own stonemasonry to rely upon and they presumably built their towers of stone without Dwarven help. But the Dwarves and Noldor exchanged knowledge and forged goods, it seems. The potential for trade is thus consuiderable, at least in eastern Beleriand.
Beyond Beleriand the Dwarves had a road system extending at least from Ered Luin all the way to the Iron Hills and apparently beyond. The Dwarves apparently engaged in some sort of trade with Avari and Nandorin Elves as well as Edainic Men, but we don't know if money was a medium of exchange or if barter of goods and service was the primary means of commerce.
In the Second Age the Eldarin civilization spread from Lindon (the last remnant of Beleriand) eastward and south to Eregion and Edhellond. Edhellond was just a small settlement, an enclave of Sindarin and Nandorin Elves who apparently wished to remain isolated from Gil-galad's Noldor-dominated realm in the north. Eregion was considered a Noldorin realm but its population included at least some Sindarin and/or Nandorin Elves. Eregion also engaged in some sort of trade with Khazad-dum, which trade was so productive the Dwarves tunneled for miles through the Misty Mountains in order to provde the Elves with a gate to their underground realm. Prior to that time Dwarves had to pass over the mountains, either by the Redhorn Gate (which gave them access to Eregion) or by going north to the High Pass where the ancient road crossed into Eriador passing near the valley where Elrond later founded the refuge of Imladris.
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