Are we looking at the front or back of the machine? Is the upright bar a blade or cutter of some kind? It looks sort of like a miniature band saw. However, with all of the knobs, it has to be for something precision. Do you have any other views?
Sorry guys. Work has been crazy. Red, After doing a little more research I think you are correct that it is a belt driven tool. However, the belt appears to have been powered by a hand crank, so the scale of those pulleys needs to be described as diminutive.