Wires "knit" around ferrite cores to form ones and zeroes. Bit twiddling anyone?
https://en.wikipedia.org/wiki/Intelligence_in_the_American_R...
Probably, any earlier than the 19th century and textiles were probably still pretty valuable, that they weren't just thrown around.
Also, perhaps most notably is the scytale which is pretty much the same concept, although probably minus the steganography.
https://en.wikipedia.org/wiki/Scytale
https://www.thegenealogist.co.uk/images/featuredarticles/bad...
http://elinorflorence.com/blog/wartime-knitting
Edited to add:
https://judyweightman.wordpress.com/2012/10/09/more-knitting...
How about the new Amazon Best Seller: String of Purls!