Many people from other parts of the shire were also asked; and there were even a few from outside the borders. bilbo met the guests (and additions) at the new white gate in person. he gave away presents to all and sundry—the latter were those who went out again by a back way and came in again by the gate. hobbits give presents to other people on their own birthdays. not very expensive ones, as a rule, and not so lavishly as on this occasion; but it was not a bad system. actually in hobbiton and bywater every day in the year it was somebody’s birthday, so that every hobbit in those parts had a fair chance of at least one present at least once a week. but they got tired of them.

what do readers learn about the setting in this excerpt?
many people are invited to the party.

some hobbits came from faraway.

hobbiton is a community with deep traditions.

bilbo purchased gifts for everyone in town