Old houses in New England were built with internal chimneys for the same reason (less heat loss).
Houses in southern states were built with external chimneys which made sense for a couple reasons. Back in the day people would keep a fire 24/7 for cooking and that fire + southern heat is uncomfortable. Because of the shorter cold season the chimney was on the outside of the house. Also, in the case of chimney fires you could tie a chain around an external chimney and rip it down with a horse, hopefully saving your home.
Houses in southern states were built with external chimneys which made sense for a couple reasons. Back in the day people would keep a fire 24/7 for cooking and that fire + southern heat is uncomfortable. Because of the shorter cold season the chimney was on the outside of the house. Also, in the case of chimney fires you could tie a chain around an external chimney and rip it down with a horse, hopefully saving your home.