Certainly they had commerce- but to the Dwarves the Shire-folk were merely "food-growers," which suggests the nature of the commerce, and fits with what is told in 'Of Dwarves and Men.' It was also said somewhere, IIRC, that hobbits would at times employ Dwarves for road-work and to repair the Brandywine Bridge, though I can't find it at the moment. Either there was a barter-for work arrangement, or the Dwarves bought their provisions with coin.
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The entire plot of The Lord of the Rings could be said to turn on what Sauron didn’t know, and when he didn’t know it.
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