It is very tempting to get carried away extolling the virtues of a pistol as mechanically innovative and elegantly-made as the Steyr-Hahn M1911. I myself am very fond of the Steyr-Hahn. I regard it as an intriguing design and a fun shooter, but I don't harbor any illusions about it. My own gun is a Chilean-contract gun made in 1912 that was in nearly new condition (handpicked from nearly 200) and had all of its original parts until the recoil spring cap fractured while shooting.
I concur 100% with Sailor's and BWilhelm's assessments that in today's world, one should rely on a new, modern weapon for carry and consign the Steyr to strictly pleasure shooting. The Steyrs are outdated warhorses, the newest of which is fast approaching 90 years of age; most of them (including ALL of the 9mm Para examples) no longer have all of their original parts. Many are well-worn and exhibit a variety of functioning problems. As a class Steyr-Hahns are breakage-prone and get out of working order very easily. Their design incorporates many parts--including the safety lever, extractor, sear, recoil spring cap and takedown wedge,) that are formed from integral leaf springs that may be either brittle or weak with age and may no longer reliably serve their function. When originally built at Steyr, these pistols were VERY finely assembled with selective fitting by experienced craftsmen who understood the interrelation of the parts and could compensate for variations in tolerance that the machinery of that era could not maintain. Later in their service lives, replacement parts were seldom fitted as precisely. Today, GOOD spare parts are practically unavailable. Some cannibalized parts often turn out to be slightly different variations in design that are not interchangeable; often crude spares were manufactured by the user countries in arsenal workshops -- and they look it.
While the major components of the pistol are strong, the overall design was never calibrated to function properly with the hotter ammunition available today. I shoot mine exclusively with 1937-dated DWM 9mm Steyr (NON-corrosive, incidentally, and still sure-fire); it is loaded with a 116-grain FMJ that I have chronographed at an average of 1025 fps, a mild load that is pleasant to shoot and not hard on the gun. Notwithstanding the figures found in standard references, 9mm Steyr is not in the same league ballistically with 9mm Largo, though the case dimensions are essentially identical. Overall cartridge length of Largo, moreover, is a tad greater--enough that Largo is too long to fit in the Steyr-Hahn's magazine.
Finally, the safety arrangements are minimal--if not primitive-- by today's standards.
The gun really has only two safety features: 1) a manual safety lever, and 2) an inertial-type firing pin.
The Steyr-Hahn safety is intended to be applied only when the hammer is cocked or to lock the slide open for single-loading cartridges without a stripper clip. It accomplishes nothing safety-wise to apply it when the hammer is uncocked --except to lock the slide-- because the firing pin is of the inertial type, just like the U.S. M1911. Any rearward movement of the uncocked hammer is coincidental; depending on the fit of the extractor (which also serves as the stop for the firing pin) the hammer may (or may not) be retracted out of contact with the rear end of the firing pin. The clearance-- if there is any-- is too little to rely on. Second only to the safety lever, the extractor is the part with the highest mortality rate and replacements are often loosely fitted and allow excess movement of the firing pin. Drawing the hammer back merely provides some unwanted running room for the hammer to go forward again if enough impact is delivered to its spur to break something.
When the chamber is loaded, leaving the hammer full down with the safety off is about as safe as it's going to get. When the hammer is resting full down against the slide, it is pushing the firing pin forward as far as it can, while the front tip of the firing pin by design is still below the breach face. Bear in mind, however, that the firing pin might also also be an ersatz replacement or improperly fitted, and some protrusion may in fact be present.
The manual safety lever, when correctly fitted, should go on when the hammer is cocked, without the need to further manipulate the hammer. If it doesn't, it's incorrectly fitted. If it won't stay securely on, its engagement surface has been altered or damaged, or the split-pin leaf has taken a set.
When the hammer is cocked, engaging the safety lever should cam the hammer back slightly to lift the hammer off the sear. If it doesn't, the safety is worn or altered to the point that it is unserviceable. In such case, if the trigger is pulled and released, and then the safety lever is pulled down, the hammer may not reengage the sear (which is not a separate part, but merely a notch ground in a long leaf spring which may or may not still have enough tension to work properly), and the hammer will fall. If this happens no secondary notch is provided to catch it, and an accidental firing could result. In this regard, it is a good idea, when manually loading the first round into the chamber from the magazine, to hold the gun rigidly with a straight stiff arm well out in front of you and pointed downrange --just in case. ANY semi-auto that slam-fires once is liable to continue doing so until the magazine is empty. If that happens, you want to be able to control it.
If the safety is applied with the hammer uncocked, and is found to "automatically" release when the hammer is pulled back, that is a result of a worn or misfitted hammer or safety. It is most assuredly NOT an intentional feature.
Shooting these old-timers for recreational or educational purposes on a range can be a lot of fun, but one needs to recognize their shortcomings and take sensible precautions to keep from hurting one's self or some innocent bystander.
M