Beautiful bike.

If the wheels spin true, no harm in using em until they need to be replaced.

32s are great for loaded touring on roads. That's the same a 1 1/4".
Wide enough for some comfort and still narrow enough to fit in the frame.

Panasonic Pasela TG is a great option.
Schwable's option is really sturdy, but not as quick feeling as the Pasela tires. Though probably better protection against flats...that's based on what I've read and not use since I've used Pasela but not the Schwable.

Here are more options. There are 1 3/8" tires for 27" wheels, if you want a tire with some more significant tread.
Kenda K161 KrossCyclo Tire 27 x 1-3/8" Black/Tan - Modern Bike


Club Roost Cross Terra Tire 27 x 1-3/8" Black Steel - Modern Bike

Beautiful bike. Have a blast!