This is a child's circular knitting machine, see 
http://www.amazon.co.uk/Character-Options-07525-Knitting-Machine/dp/B0001RFCI2 
for a modern version.  
As you say, nothing like a daisy wheel, but hey, I've got this 'thing' and 
I've got some instructions, so they must belong together.

At least it's not listed as a lace bobbin.

Jacquie In Lincolnshire

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