DavidV, welcome aboard. Your revolver is a nice example of the 32 Hand Ejector and is of the final type developed prior to WW II. As has been stated, it should be chambered in 32 S&W Long, which was one of the more popular 32 revolver chamberings of the day... so much so that the older 32 Colt Long lost out to it and Colt made their "own" 32 Colt New Police chambering to copy it. I seriously doubt that your revolver would have been specially chambered for the less popular 32 Colt and so marked, and there would have been no reason to mark it 32 Colt New Police. From the looks of it, the revolver seems to be in good shape, and if so would be perfectly fine to shoot with modern factory loads or factory equivalent reloads. If you will go through recent threads in the archive (use the search function) you will find many posts about the 32 HE and nearly identical 32 Regulation Police.
As for worth, they are gaining in collector interest all the time, and popular as shooters, so $300 - 400 or perhaps a little more on a good day seems about right.
Regards,
Froggie