Today’s estate sale find was $3 for a plastic bag with these items in it. The set of oil pastels is unused and new. The Shading Powder is also new and unopened. These are vintage and I haven’t a clue how to use the powder. since there are no instructions. The box says “For delicate shading from light to dark. Gives professional looking results. Fun for figurine painting and all crafts.” on another part of the box it says “Non-firing” and “Just Buff on with Cotton”. So it looks like these are simply what we would call today pigment powders that can be used in stamping and embossing and used like the Jacquard powders.
They will be fun to play with. I’ll try mixing them with water to see if they mix and I’ll brush some on painted whole cloth pieces dry.
If you have ever seen these I would love to hear from you!
Janice Paine Dawes, Artist 
My guess is the powders were for bisque pottery….some object that had already been fired and would be for display only after decoration. DH's grandmother did some in a Senior citizens workshop…she was more talented than they knew. Would like to see how your experiments turn out, ps GREAt baby quilt!
You might try mixing them with textile paint extender or gel medium!
The powders remind me of Duvau powder that was used in doll making. They had a chemical you mixed with the powder. Have fun! Maybe textile medium would work too.