That little bearing is right smack in the middle of the works. The governor is of a flyball design, and works by balancing the centripetal force of the turning weights with springs acting in various direction on the different parts. The bearing itself is around the thrust shaft. All of the spinning parts in the governor spin around that shaft/spindle. One side of the bearing rests on sort of a bushing that the weights act against, the other face of the bearing acts on the shaft that operates the arm that actually adjusts the carburetor, so it does need to be there and in good repair.
Now about the bearing itself. It could be just fine, just all come apart. In its normal state, as a brand new never installed part, the only thing holding it together is a few dabs of grease sticky enough to hold the balls between the two cups that form their races. Once installed and the grease spun/worked out of it all that holds it together is the tension between the various parts of the governor. It's not at at all unusual for it to come all apart and send little balls flying everywhere the second the tension is taken off the thrust shaft when the governor is removed.
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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