The hole in the tip was used to tie on a string keeper. The paper backing is most likely something called Fortisan (sp) that was used to back bows back in the era. Is the crack in the handle and actual crack or has it come unglued? If it has come unglued, gently pry it apart and reglue it with titebond, etc.
If you rebacked it with something like linen or rawhide and were very carefull exercising it before it to full draw you may be able to shoot it.
BTW...those old all wood bows show up on the big auction site regularly and some are in excellent condition.