http://en.wikipedia.org/wiki/Charles_II_of_England#mediaviewer/File:Charles_II_Prince_of_Wales_Egmont.jpg
It's a teething coral, an early version of a baby pacifier. The tip wasn't always coral, sometimes it was a bone or ivory. The "daggar" handle has a whistle and some jingly bells for a rattle. They were popular in the 1600s.