just found this in a basement

Hello fellow registered user, unfortunately we can't appraise your item for you.

It appears that someone has taken a grinder of some sort to the blade, unless you intend to use it, I would do nothing but wash and dry then oil it.
 
Superfine steel wool can be used to remove surface rust (0000 is available at any hardware store). Then a good sharpening should get it back in shape.

I definitely would not 'wash and dry then oil it' and do nothing else. That's an antique, but that's no reason you shouldn't be able to clean and sharpen it.
Chris
 
Starting at that finish level, I would be tempted to put an angle grinder with a sandpaper flap disk on it to smooth the finish to the bevels or just take it to a belt sander. Just be certain that you keep it as cool as possible.
 
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