Our gadget is clearly missing some pieces. The sticking out arm on the side is intended to hold some crossed bits of wood that make up something called a 'swift'. You place a skein of yarn over the swift and then you can wind a ball from it.Watching tictactoepony winding  yarn from another swift that I own showed me what the clubs are probably for. I think they are nostepinnes. She used a thick biro to do the same job. You wind the wool round them, rotating it as you go.  (she does it better than the video below, but you'll get the idea.