GET ON THE WEB THERE ARE MANY PLACES THAT RESTORE FLAGS, OTHERWISE IT SHOULD BE RETIRED. DESECRATION OF THE FLAG IS ONE OF THE REASONS WE FIGHT AND DIE.
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Dont let it get retired...its still well into its life and obviously has been taken care of thus farI would carefully and respectfully stitch up the problem areas and display it. Our Legion Post near me "retires" flags on the 4th of July every year with a huge bonfire and ceremony. It may get burnt up if you turn it in.