I bought a gun very like yours from a garage sale on the Lac du Flambeau reservation in WI back in the early '70s. Mine was a plain sporting rifle with a 30" #3 oct. barrel, small shank in .32 WCF. Bore was completely "shot" (rounds would keyhole at 50' both cast and jacketed; at longer ranges they made a strange whirr somewhat like an Aussie bullroarer!). I had it relined and replaced the forend, which was shattered. I think any complete 1885 should be restored to as close as original SHOOTING condition as possible, given the state of your abilities and/or bank account. My .32 was in somewhat worse cosmetic shape than yours. If you don't want a Hi-wall .32-20, trust me, someone else will!
My opinion; YOUR rifle, of course.
