First of all, instead of doing this "shuffle" you can sell the Linen Cloth on AH or do whatever you like.
I needed some money to learn a few spells etc on Nostalrius to level so i simply took Linen Cloth and made them into Bolt of Linen Cloth then sell the Bolts of Linen Cloth to a vendor.
1 Linen Cloth is 13 Copper, 2 Linen Cloth is 1 Bolt of Linen Cloth which sells for 40 Copper to a vendor.
10x40=40s for one stack of Bolt of Linen Cloth.
This is in no way any good for making any larger amounts of money at all, but it saved my ass atleast and i wanted to share this with you.
So this basically is my "emergency" way of making (yet again i write it) small amounts of money.
The small profit margain you make from this is only 1 Silver & 40 Copper.
I had a hard time selling Linen Cloth on AH so i did this instead, i had farmed the Linen Cloth by hand so only a tiny bit of profit but enough to learn new spells etc.