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You paid a fair price for the flag regardless of what date it is. Having said that, it was common during the war years to stamp the date on it. My guess is that the flag is from 1942 and, further, given it's dimensions, was intended to cover the casket of a serviceman killed in action, which is probably why it was found in Europe. Thousands of such flags were sent over during the Allied invasion of Italy and many of them were never used or accounted for.
From what I can see in the photos, it is wool bunting with cotton stars and a cotton canvas heading with brass grommets. Typical construction for the Valley Forge Flag Company during the 1940s.
Thank you again for your help and time.