K:After more thought, I am almost sure that someone has removed the plaster on the walls. This sort of interior finish just is not done.
So, feel free to replaster (gyp lathe) or gyp board the wall back to origional condition.
As far as the wall covering, the previous owners probably used a high quality wall covering that utilized the fabric sizing.......
If I were you, I would invest in a good "restoration book"......they are out there and it would be a godsend for questions like you are having.
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