Hi Steve,
That's a great little gunong you've got there! I really don't know what these small weapons were made for. I always thought of them as being made "for those who travel". Possible for use as a letter opener or as you say maybe for a child? Anyway, yours is one of the nicest ones that I've seen. Here is another thread
http://www.vikingsword.com/vb/showthread.php?t=7866 that talks about miniture swords. Congrats on your newest addition to your wonderful collection of gunongs!! Robert