Your gun is a US Army issue M1901. RAC was the Army's inspector at Colt and his stamp is on all the really old Colt military issue guns. The US Army, USN, and USMC bought versions of this gun and they are stamped with the actual service whose contract they were built under. Your's is a US Army revolver.
The serial number indicates it was manufactured in 1901. The numbers for 1901 start at 148,000 so your's is pretty early production for the military contract.
The .38 Special cartridge came out in 1902. Since your revolver was made in 1901, it wasn't originally a .38 special. The original Army cartridge was the .38 Long Colt, which was the official ctg for the Army from 1892 to 1911 (the .45 Colt was also still used during this time). The ".38 DA" on the barrel indicates it was this particular Army cartridge. A .38 Special chambered Colt from the early 20th centruy period will say ".38 Colt Special" if it's .38 special (Colt wouldn't use the marking .38 S&W Special on their guns).
The following warning comes from several references: "DO NOT FIRE .38 SPECIAL IN A GUN CHAMBERED FOR .38 LONG COLT". Apparently the chambers on many of these, like your's, will actually accept .38special cases, and some even .357 Magnum cases. Either way, firing standard .38 specials in it is not recommended.
Personally I would not fire store bought .38 special ammo in your gun. I would see no problem in using trimmed .38 special cases to make .38 LC, as .38 LC is long dead.
If your gun actually accepts .38 special cases without any problem, like binding, or anything else, you could probably use untrimmed .38 cases if you know what you are doing.
The bottom line is DO NOT fire store bought .38 special ammo in your gun. As mentioned, you may be OK with wad cutters, but with a historical martial piece that nice, I'd stick to handloads.
The gun itself is a wonderful piece of history and one really nice looking Army issue Colt from a time that is not too well known to most gun folks. You have a VERY nice gun there.
Ross