Okay smarty pants, most of you guessed around the tool's name an Adze. Though Kipper said it first,
"A woodworking tool, maybe used to make barrel staves?"
That is it, that is why the handle is so short.
Via Wiki, "The adze (/ˈædz/; alternative spelling: adz) is a cutting tool shaped somewhat like an axe that dates back to the stone age. It can be any tool with a sharp cutting edge. Adzes are used for smoothing or carving wood in handwoodworking, similar to an axe but with the cutting edge perpendicular to the handle. Two basic forms of an adze are the hand adze, a short handled tool swung with one hand, and a foot adze, a long handled tool capable of powerful swings using both hands, the cutting edge usually striking at foot or shin level. The blade of an adze is set at right angles to the tool's shaft (like a hoe orplane), in contrast to an axe's blade, which is in plane with the shaft. A similar, but blunt, tool used for digging in hard ground is called a mattock."
On Ebay there are a few, not as old, but nevertheless good shape.
The creative response goes to: