I think I would use a small paper punch to make the the holes for the blanket stitch first; easier on the fingers.
I found the following idea by putting "Tree Skirt using old Christmas cards" into my search engine.
Wondering what to do with those old cards from previous years? Use them to cover that tree stand. Cut a cone of oak tag paper to fit around the stand, leaving the hole for the tree trunk on top (and for watering if you have a real tree). Glue or tape the old cards to the stand. You can either put them side by side so they can still be opened and viewed, make a collage out of their covers, or overlay them haphazardly to look like you've thrown a stack of cards at the bottom of the tree.
If I wanted to make it more permanent I would use the tag paper pattern and cut out some fabric (felt would be nice) and sew the cards to it. Then put a piece of velcro at the top and probably another on down to keep it in place and you would have it for future years.
I think I know what you're talking about.
I seem to remember that the card pieces were first edged in a blanket stitch. You'd have to use a fairly strong needle and a decent/sturdy ply of yarn.
Then, the pieces were attached to each other, probably through crochet or sewn together with yarn.
Hope this helps.
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