(The describe part of this answer but is only decoration.) Note the careful use of inp1 and inp2 rather than noun or second: see the note at the end of Section 9.

Object -> macrame_bag "macrame bag"
  with name "macrame" "bag" "string" "net" "sack",
       react_before
       [;  Examine, Search, Listen, Smell: ;
           default:
               if (inp1>1 && inp1 in self)
                   print_ret (The) inp1, " is tucked away in the bag.";
               if (inp2>1 && inp2 in self)
                   print_ret (The) inp2, " is tucked away in the bag.";
       ],
       describe
       [;  print "^A macrame bag hangs from the ceiling, shut tight";
           if (child(self)==0) ".";
           print ".  Inside you can make out ";
           WriteListFrom(child(self), ENGLISH_BIT); ".";
       ],
  has  container transparent;
Object -> -> "gold watch"
  with name "gold" "watch",
       description "The watch has no hands, oddly.",
       react_before
       [;  Listen: if (noun==0 or self) "The watch ticks loudly."; ];