Hobbit The main conflict in this novel is ultimately the acquisition of the lost treasure of the dwarves hoarded by Smaug (the great dragon under the mountain). This treasure actually has great physical and sentimental value. The dwarves to which most of this horde belonged to loved gold and all fine physical things such as jewels and precious metals, but they also were very emotionally attached to this cache once kept by Thrain the great king under the mountain. It seems that as the author of the novel Tolkien is attempting to reveal that the dwarves are very fond of this treasure but also feel almost a since of need for this great legendary horde. As a whole the conflict is developed over a time period of a year or so.
The main way that it is developed is by the ingenious use of small side quests and troubles dotted until the final conflict is over. In this novel Tolkien uses many smaller conflicts to add to the already heaping portions of adventure and intrigue contained within the covers. Some are very thrilling such as the time all of the dwarves and the hobbit are captured and taken down to the goblins lair, or the time Bilbo comes in contact with that strange creature Gollum.