I'm not entirely certain the function this was meant to serve--maybe just a sewing pocket of sorts, or maybe a cover for something--either way, it was clearly never meant to be sewn further  closed, and the edges were carefully finished just like this. I of course just fell in love with those bluebirds, flying in a circle together!  Pretty flip side too--looks like a star if you look at it one way, and tumbing blocks if you look at it another. Pretty lining too. I might just pin it to the wall, or tuck some precious jewels inside! 

Approx 7 1/4" across one way and 7 1/2" the other, not including hanging loop. Very good condition, early 20th c. I believe.