Another great project from the booklet "Sewing" by Ruth Wyeth Spears from 1937.
"If you are thinking of a gift for some one who knits, why not a really smart knitting bag? Yes, it is possible to make one that doesn't look like a sofa cushion with the feathers taken out. It is all a question of the shape and pro-portions and kind of material. In these diagrams I have given you some measurements that will help in shaping an attractive bag that will hold 14-inch needles, a ball of yarn and a partly finished knitted garment of generous proportions.
As for material don't choose cotton or linen or thin silk for a bag that is going places in the winter. Woolen cloth of the same color as the costume with which the bag is to be carried or of a harmonizing tone is best to use. For the bag shown here 1/4-yard of 54-inch wool material will be enough. The lining will require 5/8 yard of silk or sateen. A 9-inch slide fastener will be needed to make a neat closing.
The dimensions for the side pieces of the bag are given here at A. It is a good plan to cut a pattern of newspaper. Cut a piece 16 inches long and 9 inches deep, fold it the short way through the center and then shape it as, shown. The dimensions for the end and bottom section are given here at B. This is just a straight 34-inch long strip tapered at the ends in the proportion shown. The dimensions for the handle are given at C. It may be necessary to make a crosswise piecing in the long strip for the bottom and end section. Join the pieces for the strip before you shape it.
Face the handle with the lining material. Make the bag and the lining separately and press the seams. Sew the slide fastener to the outside portion of the bag, then stitch the handle in place. When this is done, put the lining. inside, turn in the raw edges at the top and sew it by hand over the tape at the edge of the fastener."