‘Greatest of all the mansions of the Dwarves,’ says Tolkien in The Silmarillion, ‘was Khazad-dûm, the Dwarrowdelf, Hadhodrond in the Elvish tongue, that was afterwards in the days of its darkness called Moria.’ In Tolkien's invented language, Khazad-dûm means something like ‘that which was dug by the dwarfs’, as in the ‘Old English’ equivalent dwarrow- [= dwarf] -delf [= delved, dug].
In The Fellowship of the Ring, the first part of the Lord of the Rings trilogy, the fellowship pass through Moria, discover that Balin's attempt to resettle the great Dwarvish realm had been defeated, and afterwards flee from orcs and a Balrog. Gandalf dies (or ‘dies’) there and the rest of the fellowship escape eastward back into the sunlight.
So, yes: dwarfs. Dwarves, as Tolkien insisted, idiosyncratically, on pluralising the word. What are they? In the invented world of Middle-Earth, they are a race of creatures, diminutive, hardy, secretive, burrowing and delving, fond of money (gold, jewels, that kind of thing), big-nosed, bearded, ‘natural’ enemies of the Aryan elves, but not in themselves wicked like Orcs, Goblins, dragons, spiders or whatnot. But what are they, beyond this in-world description? Here's Tolkien, writing to Naomi Mitchison in 1955:
I do think of the ‘Dwarves’ like Jews: at once native and alien in their habitations, speaking the languages of the country, but with an accent due to their own private tongue. [Letters, 229]And in an interview with the BBC in 1965, Tolkien said this:
But the Dwarves are, of course, quite obviously, couldn’t you say they remind you of the Jews? All their words are Semitic, obviously-constructed to be Semitic. [quoted in Zak Cramer, ‘Jewish Influences in Middle-Earth’ Mallorn 44 (2006), 9]Cramer, in that article, notes that the Dwarfish battle cry, as uttered by Gimli at the Battle of the Hornberg—Baruk Khazadl! (‘Axes of the Dwarves!’)—takes a Jewish form: Baruch is Hebrew, as in the blessing that starts the Friday shabbat meal, baruch atah adonai, ‘blessed are you, O Lord God’.
What about Khazad though, the Dwarfish word for Dwarf? Zak Cramer's interesting article doesn't consider this, but it's obvious enough where Tolkien has sourced this word: it's Khazar.
The Khazars were a semi-nomadic Turkic people who from the 6th-century onwards dominated a stretch of land across south-west Russia, Ukraine, Crimea, and Kazakhstan (which nation is named after them). ‘Khazaria became one of the foremost trading empires of the early medieval world, commanding the western marches of the Silk Road and playing a key commercial role as a crossroad between China, the Middle East and Kievan Rus’. And here's the thing: nowadays we understand that the Khazars were a multi-ethnic population, including various Pagan, Tengrist, Jewish, Christian and Muslim populations. But, in the later nineteenth century the assumption in the west was that the Khazars were Jews—were in fact a distinct Jewish people known as the ‘Mountain Jews.’ (Despite their importance, the Khazars did not leave a literary heritage that impinged on Western traditions, and 19th-century European cultural and archeological of the Caucausus was limited). Hence you get statements like this [Henry Howarth's ‘The Khazars’, Travaux de la Troisième Session du Congrès International des Orientalistes (E J Brill 1879), 141]:
This was the intellectual tradition out of which Tolkien worked: for him the Khazars were Mountain Jews. Khazad-dûm, or its homophone Khazar-doom, is the doom of the mountain Jews: their fate, the judgment passed upon them: namely, wealth, glory, greed that unearths a fiery demon from below and their terrible destruction. Isn't all this a touch anti-Semitic? Hard to deny, really.
It's complex, this. Tolkien was not necessarily personally anti-Semitic. His 1938 letter is well known and rightly celebrated: written (perhaps sent, perhaps not: but certainly written) to a German publisher who was prepared to offer good money for the translation rights to The Hobbit, but who required, under the Nazi race laws, that Tolkien confirm that he was not a Jew: ‘I have many
Jewish friends, and should regret giving any colour to
the notion that I subscribed to the wholly pernicious and
unscientific race-doctrine ... if I am to understand that you are enquiring whether I am of Jewish origin, I can only reply that I regret that I appear to have no ancestors of that gifted people’. At this point in his life, Tolkien certainly needed the money this translation would have brought him, and there is something splendid in the certitude with which he repudiates racism here. Nonetheless, he was a man of his era, his imagination conceived the world in part in racial terms, and the ‘mountain Jews’ clearly inform his dwarfish, dwarvish, characters.

.png)