Vampire Needle by Jerry Andrus

Performer borrows a white handkerchief in order to show them a trick with a 'needle and thread'. He then produces the needle and has a spectator thread it with a piece of rope. He then pushes the needle thru the center of the handkerchief and pulls the 'thread' thru after it. This leaves a jagged hole which he trims with a pair of scissors. Handkerchief is finally shown undamaged.