Evidence of Earlier Use
The only source known today that makes reference to hobbits in any sort of historical context is the Denham Tracts by Michael Aislabie Denham. More specifically, it appears in the Denham Tracts, edited by James Hardy, (London: Folklore Society, 1895), vol. 2, the second part of a two-volume set compiled from Denham's publications between 1846 and 1859.
The text contains a long list of sprites and bogies, based on an older list, the Discovery of Witchcraft, dated 1584, with many additions and a few repetitions. The term hobbit is listed in the context of "boggleboes, bogies, redmen, portunes, grants, hobbits, hobgoblins, brown-men, cowies, dunnies".
In the December 2003 Oxford English Dictionary newsletter, the following appears:
"4. hobbit — J. R. R. Tolkien modestly claimed not to have coined this word, although the Supplement to the OED credited him with the invention of it in the absence of further evidence. It seems, however, that Tolkien was right to be cautious. It has since turned up in one of those 19th-century folklore journals, in a list of long-forgotten words for fairy-folk or little people. It seems likely that Tolkien, with his interest in folklore, read this and subconsciously registered the name, reviving it many years later in his most famous character. "
As of 8 Nov 2012 the entry "has not yet been fully updated" in OED Online version September 2012.
Read more about this topic: Hobbit (word)
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