Is the indefinite pronoun 'one' acceptable in this construct or do you need the personal pronoun?

Either "one" or "you" fits here, but "he" does not fit, semantically.

It is not grammatically incorrect to use "he" here, but that gives a different meaning from what is no doubt intended.

If you used "he" then people would understand it as referring to Jonas. The point is not that Jonas would have seen boys selling newspapers on corners everywhere. The point is that back then anyone (you, one) would have seen that.