Abstract: A bag for storing and dispensing flexible bags. The bag has an upper opening closed by a drawstring and a lower opening closed by an elastic gather. The drawstring is enclosed within a hem. The drawstring is partially exposed so that it may be draped over a hook or the like, thereby suspending the bag from an environmental surface. The gather comprises an elastic band stitched to the bag either by passing stitches through the elastic band or such that the stitches surround and entrap the band without penetrating it. The novel bag is fabricated by placing the drawstring and the gather at opposite, parallel ends of a spread out panel of flexible fabric. The ends are folded over to enclose the drawstring, and are adhered, welded, or otherwise secured in this fashion. The remaining two opposed edges are then joined, thereby reconfiguring the rectangular panel as a cylinder, with one open end encircled by the drawstring and the other open end closed by the gather.