I do not know that tractor well but if Pat is correct and it is a wet sleeve engine I would start by pulling the oil pan off and lay a piece of card board under it and see if one of the sleeve o-rings is going bad. If you do not have leak that you can see from doing that the next thing would be to make sure it is not a blown head gasket. Reason you do the oil pan first it so you can leave the radiator full of coolant.
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Today's Featured Article - New Life for an Old Allis - by Tyler Woods. My friend Jon, has an old '39 Allis Chalmers B. He thought it a marginal tractor that had long since served its time. She smoked terribly and never had much power but he couldn't afford another so he was limping along with what he had. Jon's Allis has a small front loader and though it doesn't carry much, it serves his needs. It was the hard starting and low power that made him think it was time to replace the old girl. Jon called me to help him discover why his tractor wouldn't start
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