I made this purse from two tea towels. I found a tutorial somewhere in blog land...unfortunately, I do not remember where.
I laid one towel vertical and placed one horizontal centered over the other one and cut off the edges of the horizontal towel. I used one striped towel and one plaid towel.
I placed a hem at both ends of the uncut edges and sewed rickrack across the hemmed sides. Then I sewed the middle of the horizontal piece across the middle of the vertical piece. Working from the inside, with right sides together, I sewed up the side seams.