@oristarA,
Not enough context given.
Quote:GAFFER: There's been some strange folk crossing the Shire. Dwarves, others of a less than savoury nature
NOAKES: (shaking his head) War's brewing. (Sam gazes over to the bar, where Rosie smiles across at him. He looks away) The mountains are fair teeming with goblins.
SANDYMAN: Children's stories that's all that is. You're beginning to sound like that old Bilbo Baggins! Cracked he was!
GAFFER: (laughs and nods at Frodo walking up) Young Mr Frodo here, he's cracking!
FRODO: (sits down with the drinks) and proud of it! Cheers Gaffer! (he slides the drinks across the table)
With more context you can see that
cracked when referring to Bilbo means slightly mad/touched/eccentric.
The Gaffer is agreeing with Sandyman about Bilbo because he nods. So when he says that Frodo is
cracking he's saying that Frodo is starting to sound like Bilbo, he may not be completely cracked yet, like Bilbo, but he's definitely
cracking, (beginning to go slightly mad/touched/eccentric.)
Btw, my daughter saw the second Hobbit film in China. It was in English with Chinese subtitles. Most translation was pretty much the same except for one bit. When the Master of Lake Town asks about the attitude of the people he is told that there is talk of an election. The Chinese translation of this was, "They think you're fat."
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