Brian, upon researching Houchins, he states that there were 3 styles of safeties from 1885-1950. Style 1 and 2 were three position as described and were standard until 1902. They had a rectangular window that showed SAFE when in that position. After 1902 the three position was a special order. I'm guessing that your gun is a two position because it has the third style safety button. If this a lower grade gun I doubt that the buyer paid extra for the three position. I'll further suppose that either the safety spring is broken or the small pin that goes thru the safety button tang is broken or missing. That spot of solder keeps the safety button from moving to the rear so the safety doesn't fall apart. Your gun would have to be disassembled to repair this issue.