A/N: Bilbo at the stream :)
Bilbo chattered nervously. Thorin just stood there looking to Bilbo for the first time like a true majesty, a king. It was strange really how, without his clothes he managed to exude such dignity. Bilbo didn't dare to break eye contact, he had feared that his eyes could stray downwards and make him say something truly embarrassing.
When he paused to take a breath Thorin said that he would be probably drowned by dwarves in their watery ventures. It sounded plausible, that wasn't what terrified Bilbo, nor was harsh Thorin's voice, he got used to both, Thorin's voice, and dwarves mischief, it was and image of close interaction and entanglement that drowning would require. Bilbo wasn't accustomed to bee even seen in nude, let alone touched. Touch in Bilbo's case was reduced to handshakes and occasional pats on his back, which got more common event since he joined dwarves. The mere image of entangled splashing naked bodies that would press his down not even noticing his small body in their easy to touch company, the mere sensation of being surrounded by touch was more dreadful than death itself. It seemed like most unpleasant experience.
"I prefer streams and solitude" Thorin continued to talk after a pause with his calming voice "less contact, more water" he said like he could read Bilbo's mind. That gave a little comfort to Bilbo because that only replaced pictures of crowding dwarves with Thorin swimming cutting through clear cold water. Bilbo couldn't make out what that image entails for him so he kept smiling his polite smile trying that could hide almost anything while he tried to free his mind from image of Thorin naked and in movement.
Just as he was on verge of success mentally covering Thorin with his clothes, he looked distant and safe that way, but then Thorin brake eye contact and moved making his efforts useless. To Bilbo's horror Thorin bent over and started to bend back and forth swashing with his hair through air sending trail of water drops in shiny spiral glistening on setting sun. As Bilbo watched that sight his mind went blank absorbing simplicity of the act as Thorin's muscles moved beneath his skin. Other parts Bilbo tried not to think about.
When that was over Thorin lifted his face towards the sun and with his eyes still closed entangled his fingers in his hair. That final act sent Bilbo over the edge he was avoiding so he had to drive his eyes of Thorin and to look anywhere else. He looked at his clothes that was so far away, there was no way to get to it now. He should have tried to reach it before he was spotted.
Thorin stood there a moment longer and then he mercifully removed himself from Bilbo's sight. Bilbo didn't dare to look after him. It was embarrassing enough without being caught staring after him.
When he was left alone that didn't solve his problem. He could just run for his clothes hoping no elf or dwarf would pop up to see him and then withstand some discomfort until his problem goes away like it never was. He liked that option because that way he could pretend nothing happened. But that walk from shore to his clothes bothered him. What if Thorin decides to come back to say something more? That thought made his problem a tad worse.
Bilbo squirmed digging his feet deeper into the pebbles and decided that it was best to deal with it on the spot. That way it wouldn't bothered him later on, it could be really embarrassing if it happens again. That's why, and only that, he reached down to free himself from discomfort. He usually hated that need to release tension, it took friction and time, but now it was over in a second. Bilbo watched as the water got clouded. He wasn't satisfied with himself, usually he was more restraint than this. The trip started to change him.
Good side was that he wouldn't have to think on such business for some time.
All dressed up Bilbo looked down the path on which Thorin had left and decided against it. He took a rocky path up the hill. When he was in upper halls he could hear dwarves mocking about and decided to avoid them too. He wandered darkened streets on his own finally sure in his decision.
He'll stay here for a brief while, until Thorin, Orcs and all other calamities goes away. After that he'll return to Shire. He was a small Hobbit, he belonged in his hole, not out here in this halls full of time, history and beauty.
As he walked he kept his hands behind his back, there was no need to touch anything really. That was his state of mind when Thorin had found him. This was the time to speak to him and discard their contract, surely he'll understand. After all Thorin had expected that from the beginning, who was Bilbo to deny him that. Surely no one important.