The Merchants of Middle-earth - Page 9
© Michael Martinez
The presence of inns and taverns throughout the Shire implies a fair amount of social activity and travelling. These local watering holes probably served as the centers of their communities' social lives and probably were located close to whatever markets were set up in the villages. It's doubtful there were many powerful tycoons like Lotho Sackville-Baggins, who bought up many farms and plantations in Southfarthing. His undertakings were at least partially financed by Saruman.
As usual, I've only been able to touch upon these matters, but I think it's evident that Tolkien devoted a considerable amount of thought to money and economics in Middle-earth, although it would be impossible to fully document the trading activities of the various peoples. The scale of trade was probably always small, except in the supply of foodstuffs for great armies or the Dwarven nations. Tolkien probably did not envision a massive economy but he seems to have been aware that ancient traders wandered across Europe for thousands of years and in constructing Middle-earth he allowed for a broad and usually stable economy.
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