Chapter 16 a thief in the night

Bilbo has a lan. He decides that he will leave the mountain and offer the Arkenstone to Bard; then, Bard can offer the Arkenstone to Thorin in exchange for a fair portion of the treasure. Of course, there is so much suspicion on both sides that Bard has no way of guaranteeing that Thorin would make good on his promise to offer repayment. At any rate, Bilbo establishes himself as a figure of incredible honor‹, even though he may be a traitor of sorts. At the end of the chapter, Gandalf appears and says "Well done, Mr Baggins," adding, "There is always more about you than anyone expects."