Well, and old Stevens Favorite for sure.  I have one from the 1896 to 1901 range, and it looks similar but a few things are different.  Not as knowledgeable as some of the others here, but a few thoughts and questions.
-- don't recognize the knurled ring between bbl. and reciever
--nor does mine say "22 LR, or even "22 Long Rifle"
--The loop instead of a knob under the barrel would indicate it is very old IMHO.
---Please open the action and and see if the extractor finger is offset to the left of the bore, or if it is centered at the bottom middle of the bore--a pic would be nice
--also with the action open, is there a block of metal at the bottom right of it, with a screw in it?  This would be used to adjust the lever for tightness.
---The W78 would be the serial number, but I admit I am confused--They went to letters before a number (starting with "A"when they ran out of space for digits, but not sure in this case where the rest of the gun looks old
I do have a reference book by Frank DeHaas that i will look at tonight, to see what it says.
Really a wag until I look it up, but it may be prior to 1896?
The Favorite was essentially a boys gun back then, but still very accurate for it's use.  Because they were a boys gun they often got "rode hard and put away wet", and otherwise neglected.  IE, there are quite a few out there, but often in terrible shape--and usually not that old either.
Hope this helps
Let you know what else I can find by the morning

I did a little more checking, and have another question;
--Does the extractor merely pull back a round  or shell about 3/8" and you have to pick it out with your fingernails, or does it actually flip or eject it it out of the rifle?  still need to know if it is on the left side of the barrel or centered in the bottom.
--The knurled ring on the barrel is used to move the barrel in or out of the reciever, as a way of tightening the barrel against the breech block, thereby tightening or adjusting the finger lever.
From the loop barrel barrel screw and the buttplate, I'd say it is more towards the early years or so, but after 1901 and most likely after 1904. but the knurled ring on the barrel would put it more towards 1912  or so, but it is most certainly before 1915.  

Also, that pin through the buttstock appears to have been added later--what is on the other side of that pin on the buttstock?  Perhaps it was added due to the missing lower tang screw.

Still looking for more serial number info

BTW--by the sights it appears to be a Model 17 Favorite

Also in my area, a typical asking price would be $250, people would probably take $200 or so depening if bore is OK, not too many cracks in stock, etc.

How is the bore?  Have anyone shot it recently?  

On extraction problems, the extractor finger is not very wide so there is not a lot of purchase area for it.  A good cleaning might help.  Also try a few different types of ammo. 
Std. Vel. ammo might be best for extraction, as it shouldn't have as much pressure especially if the chamber is rough and therefore not expand the case as tightly against the chamber, easing the job the extractor has to do.   
My old Fav. works very well with CCI Std. Vel. at 1070 fps.-doesn't extract quite so well with high speed stuff in the 1280 fps range.  The gun is safe for HS ammo (if in good shape), but no need to really use it in that gun either.

Redwing--I mispoke--you are exactly right on extractor vs ejector. Next time I will engage brain before connecting it to mouth (or my typing fingers!)
Early Fav's. had an extractor and then they went to an ejector it seems, which I thought would help pin down the date of his gun.
Wish I had a date reference by serial number--but haven't found one yet.  John Calahan the Savage historian said last year that all the Stevens records burned some time ago.
So, all you guys at ASSRA have helped me a lot in the last yr and I have been trying to return the favor or pass it forward to OTV

Hey OT !!!

Me again !!!

Pic’s worth many words, like:

Side bolt holding Stock to frame:  8>((

Lever not closing all the way (cured by closing hammer down and adjusting take-up ring-nut on barrel, till it contacts.  

If nothing else, I would then consider it to be worth 100.00…

Ed …

There were several mechanisms put on the 94 Favorite to cure droopitis leverosus, including a screw in the breechblock (7:00 extractor model) a screw and spring in the bottom front of the frame, the screw-in barrel with the collar (like yours) and finally the spring and plunger in the lever.  This last was the most reliable and least intrusive arrangement.

Most of the central extractors were plain, but some of the earlier ones were narrow at the bottom and wide at the top.  The "kicking extractor" might have been on the very late 94 Favorites, but were a standard feature on the 1915 version.

The cross-screw in the wood in the grip is a common owner repair.  Before the days of Epoxy glues, it was hard to make a good glue joint in that area once the wood had split.  I've seen many Favorites with the stove bolt crossways in the grip, and the wood loose around the tangs even so.

Your rifle is in used, but not bad condition, considering it was a "working gun."  If there is rifling in the barrel, a little cleaning with JB Bore Paste might work wonders.  I have .22 and .25 Favorites with dark bores that are still pretty good shooters.  (If there are actual pits and rings in the bore, generally that is hopeless.)  The shells you have don't show an extreme amount of swelling.  I have made extraction (with the fingers after the extractor pulls the shell out) easier by soldering a few fired cases to the heads of nails, coating the shells with JB and judiciously twirling them in the chamber, moving them in and out at the same time.  Don't go crazy with this and enlarge the chamber, but sometimes the polishing next to the slight swell is all it takes to at least eliminate the need for a screwdriver in getting the shell out.  Another thing to try is various brands of Standard Velocity ammo.  The combination of low pressure and hard brass on one brand might be all you need.  Long live the Favorite!

You're right.  It's a hundred dollar gun at most.