This flag was a stock item at the now defunct Dettra Flag Company, of Oaks, PA. It was trhir version of the,so called first navy jacy of the Revolutionary War.
It seems that this reproduction was the result of an English political cartoon which combined the Commander-in-chief's flag with the plain 13 red and white striped flag, sometimes used as a jack.
Text on tag stitched to hoist :
"Bulldog 100% Cotton-Bunting"
ZFC Noteworthy Flag
No Description