This bag reminds me of the ones we used to use to carry clothespins when hanging out the wash, but it’s decorated with a design proclaiming “Mi Lady’s Undies” so it may have been meant as a lingerie bag. I don’t think this has ever been used, I found it at an estate sale rolled up tightly in paper and lined with paper. It looks like an advertising item marked “compliments of Chas. W Rice and Co. Inc” Featuring a dowel, hanger and two lovely lady figures this would be a perfect gift for fans of pin ups or advertising and would be a great place to keep some undies. 
Approximately 16” x 16” plus a 6” hanger drop