Around here in NJ that kind of wiring was very normal. Most of the houses built and wired in the 50's-60's had a NM wire that had paper filler, and it had a derated #16 grounding wire. Some of the paper fillers even had a tar type of wrapping around them. It was also very common to ground the metal box out in the back of it using a bolt and a nut. The worst part about this job was that if you looked into the box when it was in a closed wall, you would loosen the screw (which you could see inside of the box). However you would be thinking that the screw went into a thread hole and not knowing that it was attached behind the box with a nut. Once the whole thing was loose, you were in trouble. You couldn't loosed it up anymore because the nut would spin behind the box and you couldn't tighten it back up because you couldn't get to the nut.
The grounding method shown above is common in homes built in the 50's, only thing is the conductor is wrapped around a nail,(so much for good contact).The asphalt pipe is called "Orangeburg" works fine until tree roots find the joints, (also was common in 1950's and 60's homes).