This free pattern originally published by The American Thread Company, Star Book No. 107.

Loop Stitch Beanie
This Hat and Bag can be made with:
“GEM” HAT and BAG YARN, Article 144.
2 skeins Med. Blue or color desired for hat.
4 skeins Med. Blue for bag.
Aluminum crochet hook size F.
HAT
Ch 2, 6 s c in 2nd st from hook, join in 1st s c.
2nd Round. * Ch 1, s c in next s c, repeat from * all around, do not join this or following rounds. Place a marker at beginning of each round.
3rd Round. * Ch 1, 1 s c, ch 1, 1 s c in next s c, repeat from * all around.
4th Round. * Ch 1, s c in next s c, ch 1, s c in same space (an increase), ch 1, s c in next s c, repeat from * all around.
5th Round. * Ch 1, s c in next s c (pattern), repeat from * all around.
6th Round. Working in pattern increase in every 3rd s c.
7th Round. Same as 5th round.
8th Round. Same as 6th round.
9th Round. Increase in every 4th s c. Work 1 round even in pattern.
11th Round. Working in pattern, increase twice in round.
Next 7 Rounds. Work even in pattern.
19th Round. 1 s c in each s c and 1 s c in each ch 1 space.
20th Round. 1 s c in each s c, sl st in next st to even round, ch 1, turn.
21st Round. 1 loop st in each s c (loop st: wind yarn over index finger, insert hook in st, draw yarn through pulling yarn from under finger, drop loop from finger letting loop fall to right side of work and complete s c), join in l st loop st.
Next 3 Rounds. 1 loop st in each st, join each round, ch 1 to turn last round.
Next Round. 1 sl st in each loop st, join, cut yarn. Decorate with your favorite button or jewelry.
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