If it were bad seals in the cylinders, the loader would fall back down all by itself. Tilting the bucket would not cause the loader to drop.
On a large-frame tractors of that era, the two hydraulic levers shared a common pivot. One lever had a tube, and the other had a rod that ran through the inside of the tube. If a tractor sat around long enough these could get sticky and moving one lever would also cause the other to move with it, activating both remotes. You wouldn't notice it raising the loader, but tilting the bucket would also cause the loader to drop.
I don't know how the valves are arranged on a 544, though.
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Today's Featured Article - Tractor Profile: Allis-Chalmers Model G - by Staff. The first Allis-Chalmers Model G was produced in 1948 in Gasden, Alabama, and was designed for vegetable gardeners, small farms and landscape businesses. It is a small compact tractor that came with a complete line of implements especially tailored for its unique design. It featured a rear-mounted Continental N62 four-cylinder engine with a 2-3/8 x 3-1/2 inch bore and stroke. The rear-mounted engine provided traction for the rear wheels while at the same time gave the tractor operator a gre
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