This pattern is from a Sunset book called Knitting Techniques and Projects, published in 1976. The book has the following recommendation:

“This knitted belt bag works equally well as a coin purse or a golf tee holder; or use it to carry your lipstick and comb. Use any scrap yarn to make the bag; seeds, shells, leather, coins, or other small found objects serve as a weight for the purse flap.”