Halflings are a strange race. They are shorter and just as stout as dwarves, but they have an ability to blend into their surroundings. They are not as strong as dwarves but do seem to be more intelligence. They also have the same love of creature comforts as Town Dwarves.
The ability to blend in anywhere has a twofold benefit. They can seem to disappear in plain sight to the extent that they go unnoticed. On the hand they blend in so well that they have become superb and crafty merchants.