Quote:
The only real official in the Shire at this date was the Mayor of Michel Delving (or of the Shire), who was elected every seven years at the Free Fair on the White Downs at the Lithe, that is at Midsummer. As mayor almost his only duty was to preside at banquets, given on the Shire-holidays, which occurred at frequent intervals. But the offices of Postmaster and First Shirriff were attached to the mayoralty, so that he managed both the Messenger Service and the Watch. These were the only Shire-services, and the Messengers were the most numerous, and much the busier of the two. By no means all Hobbits were lettered, but those who were wrote constantly to all their friends (and a selection of their relations) who lived further off than an afternoon's walk.
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This is interesting, as there is clearly a system of sorts in The Shire, and there are clearly some services to be paid for, i.e. post and policing. But how are these paid for? There is clearly no taxation system, as there are no tax collectors as far as we know (or there would also be a civil service for the mayor to oversee). So those who work for the Postmaster and First Shirriff must do so voluntarily.
In a state where anarchy is the political system used, then people would have to collectively share responsibilities to do the things they wanted to see done. This seems to be what is happening in The Shire.
Even so, it is clearly not a perfect system as there are 'unlettered' Hobbits.