This seam is a Combination of Colonial knots arranged in half circles, Tassel Stitch and Detached Chain Butterflies…The Butterflies are from Dorothy Bond’s Crazy quilt Stitches Book.
The Tassels are a Variation on Maltese Stitch which I found in an old Dmc Encyclopedia of Needlework.
 
To make the Tassel use a stranded thread…After threading the needle bring both ends together but do not knot them.
Take a small stitch towards you (this stitch will be at the top of the tassel), leave the tail of the thread a little longer than you want the finished Tassel to be.
Bring the tail of the thread down and hold it with your thumb while you take the next stitch which goes over the tail and up next to the first stitch.
Before pulling the threads tight, thread the needle down through the loop.
Use the eye end of the needle to adjust the top of the Tassel.
Trim the Tassel to desired length.
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