According to The Oxford English Dictionary, it is probably derived from the German noun 'Schmeck', meaning a 'taste'. It has meant heroin or a small packet of the drug since the 1940s. We see the same sort of usage in saying that something 'smacks'; of something else, as in "That smacks of dishonesty to me."
As Quizmonger - Schmeck seems to be the derivative word - mainly U.S. from 1932 - applied to a narcotic drug from the Yiddish for 'sniff'. (Oxford dictionary of Slang)
Well, the scholars at The Oxford English Dictionary - the great-grand-daddy of all Oxford English dictionaries - have been unable to find any reference to this prior to 1942. It appeared then in an American dictionary of slang. I wonder whether your 1932 is just a misprint for 1942, Danube. But what the hey!