The Hobbit wasn’t published until 1937 and the baby boomers didn’t really discover it until the 60s, ‘70s thinking Gandalf and Bilbo were blowing dope.
The Hobbit was published to widespread critical acclaim and won several awards for children's books; its publisher hounded Tolkien for a sequel for more than 15 years.
Like the LOTR, it is a deeply traditional work in the moral and literary tradition of myths and fairy tales, and had not even the slightest hint of counter-cultural overtones.