It doesnt look to be in bad shape. Id leave it be.
If it times up OK, Id shoot it. I load black powder in mine, as its from that era (serial number is 148000 range). Ive seen differing opinions on using the smokeless loads in the older, black powder era guns, and figured Id give BP a try.
We found the gun in my dads drawer after he died, and have no idea where he came by it. It was in good shape, and I figured it might be a fun project to get it back on the road. Mine isnt marked for caliber, and that was an adventure in itself figuring it out, although it being a S&W made it a tad easier.
Unfortunately, I was looking for ammo back during the craziness, and only ever found two places that had 32 S&W. Both were pretty pricey, about $50 a box of 50, and they were smokeless loads. I reload, and found Midway had dies, brass and bullets, and that all cost me $75. I had BP, so I was set. Loading BP is a little different, but not hard.
I dont shoot it much, but it comes but it comes out a couple of times a year and is fun to shoot, even if POI is about 6" off of POA at 5 yards.