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

Loop Stitch Bag
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.
BAG
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. Work in pattern same as hat increasing in every other s c.
7th Round. Work even in pattern. Work all rounds in pattern unless stated otherwise.
8th Round. Increase in every 3rd s c. Work 1 round even.
10th Round. Increase in every 4th s c. Work 2 rounds even.
13th Round. Working in back loop of each st work 1 s c in each s c and 1 s c in each ch 1, join in 1st s c.
14th Round. Ch 1, s c in same space, * ch 1, skip 1 s c, s c in next s c, repeat from * all around, do not join this or the following rounds.
15th Round. * Ch 1, s c in next s c, repeat from * all around. Repeat the last round 4 times, then ch 1 and join last. round, turn.
20th Round. 1 loop st in each s c and in each ch 1 space, join.
21st Round. 1 loop st in each loop st, join, turn.
22nd Round. Ch 1, s c in same space, * ch 1, skip 1 loop st, s c in next loop st, repeat from * all around, do not join this or following rounds. Work 7 rounds even in pattern, then ch 1 and join last round, turn.
Repeat the 20th, 21st and 22nd rounds.
Next 10 Rounds. Work even in pattern, then ch 1 to join last round.
Next Round. BEADING: Ch 5, tr c in next s c, * ch 1, tr c in next s c, repeat from * all around, ch 1, join in 4th st of ch.
Next Round. Ch 1, s c in same space, * ch 1, s c in next tr c, repeat from * all around. Without joining rounds work 4 rounds even in pattern, ch 1 and join last round. Next Round. Ch 2, s c in same space, * 1 s c, ch 2, 1 s c in next s c, repeat from * all around, join, cut yarn.
DRAW STRING: Crochet a ch about 30 inches long, sl st in 2nd st from hook, 1 sl st in each remaining st of ch, cut yarn. Work another string in same manner. Lace through beading starting each string on opposite side and lacing over 2 tr c and under next 2 tr c. Sew ends together. Cut a cardboard about 6 ½ inches in diameter. Cover with material if desired and place in bottom of bag.
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