"Penny rug" is a name given to a folk art style of appliqué. Dating from the mid 19th century, they were traditionally made from felted wool (i.e. the wool was washed to shrink it). And despite their name, they were not used on the floor, but as decorative table rugs or wall hangings. Fabric was just too precious then. The "penny" comes from the coins that were used as templates for the circles. Most of the penny rugs had simple shapes of flowers or animals, usually layered and appliquéd on the rug with blanket stitch embroidery in contrasting colors. Their simple, primitive style gives them a charm that has continued through the years.