This is a cute little bag, and easy to line if you wanted to.  I just cast on about 60 at the top, did an eyelet row for the I-Cord and then knit to the desired length and decreased evenly at the bottom till I had 6 sts.  Drew through those and seemed in my ends.  This took about 125 yds of aran weight yarn on size 7 needles and is about 7 inches long.  I also knit the first couple of rows before the eyelet row in seed stitch (1 in) to keep it from rolling.

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