On anarcho monarchism...

Based on Tolkiens personal writings it's probably more correct to say he wanted either an absolute monarchy run by a king who was basically just a benevolent dictator, or no state at all. However his thoughts on the subject are best expressed in his description of the Shire (which was deliberately depicted as idyllic and nigh perfect) IMO:

All that was demanded of them was that they should keep the Great Bridge in repair, and all other bridges and roads, speed the king's messengers, and acknowledge his lordship.

The Shire at this time had hardly any 'government'. Families for the most part managed their own affairs. Growing food and eating it occupied most of their time. In other matters they were, as a rule, generous and not greedy, but contented and moderate, so that estates, farms, workshops and small trades tended to remain unchanged for generations.

For they attributed to the king of old all their essential laws; and usually they kept the laws of free will, because they were The Rules (as they said) both ancient and just.

The Thain was master of the Shire-moot, and captain of the Shire-muster and the Hobbitry-in-arms, but as muster and moot were only held in times of emergency, which no longer occurred, the Thainship had ceased to be more than a nominal dignity.