I hope this link works! We get the Lancaster (PA)Farming newspaper and there is an article this week about 'privy bags'. It says that "practical storage for the paper saved (for use in the outhouses) varied but in one part of southeastern Pennsylvania it became popular for the women of the household to decorate the plain old linen privy bag to make it not just functional but artisitc. " There are pictures with the article and many of the bags are small quilts! Lots of work to be hung in the outhouse!
There is going to be a display of these bags 11/21 to May 2010 at the Historical Soceity of the Cocalico Valley's museum in Ephrata. There is a website listed: http://www.cocalicovalleyhs.org/
(I found the correct site now!)
I just had to share this with you before I forgot!! I never heard of these bags.