This is a rare knitting sheath from Wales. A similar one is illustrated in Brears book on Knitting sheaths. Note the conical shaped shaft carved to resemble a series of cones nesting one within the other - a  particular characteristic of some of the Welsh knitting sheaths.
Interestingly the knitting sheath changes half way up to a square shaft with cross hatch decoration. The initials HMS are to one side, the carver didnt quite leave enough room for the S so it is a little squashed in.
The date runs around the centre and depending on how you read it can be read1778 or 1877. Note that one of the 7's has been carved upside down by the carver.
This is a really interesting knitting sheath because of the many features  it has.
It measures 16cm l x 1.3cm w x 1.5cm d