In the early 1900s, tobacco companies began inserting small rugs as advertising promotions or premiums into packages of cigarettes, chewing tobacco and there is some debate on if they made their way into cigar packaging. Larger rugs were also offered and could be ordered directly from the company by sending in a number of package coupons. All of these rugs were printed on flannel, felt or velveteen with silky eyelash fringe sewn on the ends. Less common ones were woven with silky threads creating the pattern and fringe. The majority of rugs - felts, flannels or silks as they were popularly called, were produced between 1910 and 1915, with production ending in the 1920s. These are a few from my collection.
This is a larger one that I use in my Tootsie toy great room. It measures 3-1/2" X 6-1/2"
I end with another great piece that I found on the Rocky Mountain Quilt Museum website. A quilt made from tobacco felts with flag prints.