Somewhere I read that a few Victorian women did smoke small dainty pipes !! If that is true,, (cant remember where I read that)
but if so,,its possible that it could be a carrier for a few matches !! The top could be used for tamping down the tobacco and as a striker !! As to the hole,, depending on what is used as a striker,, could be just for ventilation and keeping it dry !! Seems like this was more common in the UK and Europe than here but don`t hold me to that !! Memory is vague !!