That's probably a 3.25 inch barrel, if you measure it from muzzle to cylinder face. The gun you describe is a .32 Hand Ejector, Third Model, that was made about 1927. Lots of these guns were made, so they are not exactly rare. But the condition you describe elevates its value. The standard Catalog of S&W, Third Edn., says a Like New gun might go for $700, and one in merely excellent condition maybe $385. Those prices are now a couple of years old, but we have also had a recession. Those are forces going in opposite directions.
The gun as you describe it by itself is maybe a $375-400 item today, with prices going higher and lower in different parts of the country. If you have the original box for the revolver, that would increase its collector value significantly.
Any chance you can post some pictures? We love pictures here.
David Wilson