The later ones with bearings may have used something on them other than a modern style bearing. But I bet you are right on it having just the sleeve bushing. I think the pipe I used was exhaust pipe as it was just thick enough to fill the gap between the axle and housing. As long as you keep it greased it will work. There have been iron on iron used for years in other applications. You may have more or less wear than that on yours. Yes the hub part of the wheel sits against the cap on the axle. If the bottom side of it is better than the top just rotate it on the axle.
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