Well BiTD, most bikes where designed around a 'Layback' (aka normal to me) seatpost. When suspension forks came around the 'inline' became common to shift the seat forward and gain back the slight movement backwards cause by the up&backward tilting of the bike...
Though of course some bikes where designed around an inline (e.g. anything that had syncros posts

)
If you're on the front of your rails, then I would say it's asking for a normal seatpost.
The front of the bike is not actually that low and to me seams quite high (actually to me it seems your seat is quite low) It's almost level with your handlebars
First I would try er hum what do you moderner call them. flat straight bars ? It'll put you wrists at the correct angle for the style and in the correct place (not to wide).
But if it doesn't fit it doesn't fit and the frame is just wrong for you.
Though it's very hard to comment on most by looking at it as the tyre make the wheels look really big, the sweeping handlebars make the front look much further forward than it is and the seat make the post look shorter and chunkier than we are used to seeing with flites.