Sandy,
In 1965, my Uncle Kell and Aunt Julie built themselves a new home in rural Mississippi. They had been married about 4 years, and had a small son at the time. My uncle worked at Masonite Corp. and my aunt stayed home with my cousin Mike. My uncle didn't make a lot, and money was tight, so the house was very basic. The walls were Masonite Royalcote paneling, and the ceilings were 12"x12" fiber tile. Floors in all rooms were covered with Armstrong Excelon tile, and no baseboards were installed. For several years, the interior doors had no knobs, except the bath and master bedroom, and the bedrooms and bathroom had porcelain light fixtures like commonly seen in closets and basements. As time went on and they saved up money, improvements were made, but baseboards were never put in. Unfortunately, in March 1988, the house was destroyed by fire. According to the neighbors, it burned very quickly due to the thin paneling, and flamable ceilings.
They weren't the only ones to have paneling and no baseboards in a site-built home. Many other country houses in that area were like that; built as inexpensively as possible.