First off, all old tractors leak oil here and there. If it's just a little dampness/seepage it's nothing to worry about.
The transmission and final drives are separated. Each has its own oil reservoir. Normally the oil level in the final drive is below the axle so there is no way the majority of the oil can leak out.
The seed drive gear can be removed easily, and doesn't have anything to do with holding the oil in. It just slides on over a nut on the end of the axle shaft, and is held with a pin.
There is no need to keep the gear on the tractor unless you are using it to drive the side dresser/planter.
Yours is worn, but the tractor is 60+ years old. That is to be expected. When you go to put it back on, wrap the nut with some metal from a beer can to take up the wear.
The seal is probably worn on the axle shaft, and could stand to be replaced. I think it can be done without taking the entire final drive apart. Take the gear off, then take the 4 bolts that hold the cover off. You should then be able to see the seal.
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Today's Featured Article - The Nuts and Bolts of Fasteners - Part 2 - by Curtis Von Fange. In our previous article we discussed capscrews, bolts, and nuts along with their relative hardness and thread sizes. In this segment we will finish up on our fasteners and then work with ways to keep them from loosening up in the field. Capscrews, bolts and nuts are not the only means of holding two parts together. When dealing with thinner metals like sheet tin, a long bolt and
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