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Middle Earth Info on The Shire:

The Shire
      The Shire was an area in Eriador between the Baranduin and the Far Downs, originally a fertile and well-tilled part of Arnor. In the course of the waning of the North-kingdom the area was deserted, and in the Third Age 1601 it was ceded by King Argeleb II of Arthedain to the Hobbits, led by Marcho and Blanco. By 1630, most of the Hobbits in Middle-earth lived in the Shire, which they divided into four Farthings and a number of folklands.

The Shire
      The social structure of the Shire seems to have been rather simple. There were a few members of the landed gentry who were well enough off not to have to work, but most Hobbits were farmers, tradesmen, or laborers. There were some poor Hobbits, but their plight was not extreme. The Shire was primarily agricultural. It was also called the Four Farthings.