Mastai, Boleslaw and Marie-Louise D'Otrange Mastai. The Stars and The Stripes: The American Flag as Art and as History from the Birth of the Republic to the Present. New York: Alfred A. Knopf, 1973.
On page 137, there is a statement, not offered with documentation, that reads as follows:
"Genuine attachment to the symbolic first union of thirteen stars combined with a hope that the Southern federation would soon attain that number of states. For this reason, many early 'Stars and Bars' optimistically displayed, like this one (a silken miniature), thirteen stars arranged in a 'wreath' of twelve stars with a thirteenth at center. Precisely the same device, except that the field contained thirteen stripes, was being used on miniature flags in the North at this time. And in both South and North, dainty 'flaglets' were made for or by children; known also as 'Bible flags,' these were often put for safekeeping in the Great Book."
I also need to go back into my files on the Quantrill Flag to see what else I found at the time which wasn't much, but it led me to think that in the case of the Quantrill Flag, it's size--roughly 7" x 13"-- and some other random comments led me to consider the plausibility that it started out intended for a large family Bible, but became a keepsake for for one of Quantrill's men, who would lose it in the Olathe, KS, town square the day of the raid there.
I am certainly willing to consider other possibilities, particularly in this discussion, where nothing has been said that seems terribly far-fetched.