ITA it's probably a monogram ... for the person who did all the work in making this quilt. It looks like very intricate work from that time ... and with some ribbon folded work in there too.
Luana ... Perhaps you can tell us more about the embroidery? Is there something on the two lighter coloured strips? some embroidery? words? And are each of the snowballs embroidered? I'm thinking this is a snowball style crazy quilt!
Would love to see more pics, of the embroidery and the snowballs, as I'm sure that many others would.