Quick count shows 33 stars, so I'm thinking it is a Civil War era flag and the "covering" is a representation of the caps worn by Revolutionaries in either France or Italy.
If it is a case, then it's just a case used for "casing" the colors. (Refer to "The Horse Soldiers" John Wayne "Uncase the colors" Trooper "Oh great, here we go again." and the General Orders 10. To salute all officers and all colors and standards not cased.)
Generally the fringe around the edges and the cords and knots/tassels are gold bullion (not solid gold but that's what certain gold covered fibers and cords are called cuz you can't gild or plate fibers), but and this is a big but, ifit is the "Battle Flag" of a military unit then the cords and fringe may reflect the corps colors of that unit. Cavalry gold/yellow, Infantry blue, Artillery Red.
Again the colors of the Caps are red for France and blue for Italy (if I recall correctly Garibaldi had only recently unified Italy and there were some units consisting of all former Italian soldiers, similar to the Irish Brigade and Highlander brigades)
As far as finials go, some but not all of the Services specify which finials are required for which/whose flags. The Sea Services (Navy, Marines, Coast Guard) have regs specifying (partly so an OOD and Quarterdeck watach can provide the correct passing or arriving honors), last I heard the AF recommends. I have seen gold and silver plated Mack Truck Bulldogs on Marine Flags. The Flag Code does not address the use of finials.
The Eagle is nominally for the Presidents Flag only, but is often used for national flags or all flags in a color guard. BTW, the Military Regs don't apply out side the bases so you can put whatever you want or ypour own flags.
I'm thinking you have a period drawing, not a contemporary "correct" usage illustration. Also depending on where you count the flag has from 14 to 18 stripes. Notice a red stripe on top and a white stripe on the bottom which means it can't have 13 stripes.