There are three generally accepted definitions of the noun lace:

1.. A cord or ribbon used to draw and tie together two opposite edges, as of a shoe. 2.. A delicate fabric made of yarn or thread in an open weblike pattern. Also called lacework.
 3.. Gold or silver braid ornamenting an officer's uniform.
The lace on officers uniforms was usually either gold or silver embroidery or braid, but wool braid was also used on other types of uniform such as footmen in large houses.

From a web site which sells worsted lace:

Worsted wool lace was called worsted ferret in the 18th century and was used for regimental lace, general clothing binding, petticoat and gown trims and hems, pocket book binding, tying women's cloaks, garters, bed hangings, slipcovers, Native American Indian garments, and trimming for hats. Because of the chevron design it works well when hand sewing and turning curves and corners. Wool binding is very durable for home furnishings or clothing.

Jean in Poole, Dorset, UK
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