Nowadays we would call this a small-bodied guitar.  The C.F. Martin company called a very similar guitar to this a “concert” sized guitar, designed to fill a small concert venue.   These guitars can do this.  The small size gives acoustic efficiency.  They have a well balanced sound with a very good midrange and treble response, the frequencies we hear most easily.  Originally they were made with gut strings.  With steel strings and appropriate bracing this model 2 projects a warm, dry sound perfect for blues, fingerstyle and old time American accompaniment.