The lift lowers when the control lever moves the spool in the base of the pump and uncovers the exhaust port allowing oil to exhaust back to the sump. If the control lever linkage l is not moving the spool the full distance or there is something obstructing the port opening the lift will not lower or it will lower slowly.
Remove the right inspection port and observe the movement of the spool as you operate the control lever - you can even reach in and operate it directly to see what is happening. If the spool is not moving the full distance adjust the linkage to correct the problem. If the spool moves properly but the lift does not respond there is likely a blockage inside the valve/pump. Remove the spool and clean it and the valve cavity.
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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