Wait a minute...Im a little concerned...
Shelley, were you using your circ LIKE straight needles for the bottom of the bag? You should not have "joined" anything...you should not be working in the round until AFTER picking up those sts. The bottom should have been knit every row, giving you the ridges of garter st, because you were using your 1 circ like straight needles.
I dont know what difference that might make after felting, except that garter st tends to felt up a little thicker than stockinette.