I would first line the dress.  All the seam allowances are falling apart because they have  not  been properly neaten.  The dress bears traces of former user/s, for instance, the ribbon at the hem line was poorly sewn by hand. Some parts have an extra shine, maybe from the wearer skin or maybe from ironing.

The taffeta is not of good quality and has no body. Today I would use it to line a garment, not to make a dress.  However, I would wear it with a gauze full  underskirt, black stockings, high heels, and a pearl necklace, and I would go swing dancing with it.