Them Dwarven folk.

[Thinlómien]

Then we get to see Gloin's kindness towards Frodo during Elrond's supper. As it says Gloin and Frodo talked the whole time. Gloin had deep respect for Bilbo and of course would like Bilbo's heir.

Hmmm... damn my poor memory and my laziness (I'm too lazy to check), but I think that in LotR it is a few times said (not straightly, of course) that hobbits had the best relationships with the dwarves of all races of Middle-Earth. (Except bree-hobbits and bree-humans, of course.)

I have got the impression that dwarf caravans (merchants) pass through Shire and sell things there. That would make them familiar to hobbits at some degree. (In one of the first chapters of LotR it says that dwarves have talked with hobbits; given them news. It leaves the impression that it wasn't the first time hobbits had talks with dwarves.)

edit: And, dwarves had to have some trade with the hobbits, by the way. Otherwise they couldn't have pipeweed.

edit2: Unless they bought it from Bree...