When I was very young (sixties) my grandmother had such a knife for cutting bread, not the large farmers bread but the normal size (the size of the blade was just like a normal bread knife, so to small for very large breads). If I am correct it was used on the field so you can hold and cut the bread in your hands, no need to put it down.
The handle is not shrunk, it just like you see in the picture.
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