Paper was added to Alpha in the Seecret Friday 6 (v1.0.11) patch, and is used the same way in Beta. Paper can be crafted from Sugar Cane. Paper currently serves no gameplay purpose, except to make books which are used to craft bookshelves for decoration.
It takes 9 Sugar Cane (plus 6 wooden planks) to yield 1 bookshelf.
Crafting
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