Water in any of the housings is common in old tractors. While it can be from sitting outside it is not usually the cause. Moisture gets into the housing from the humidity in the air, and the next night it condenses on the inside walls. When the tractor was working everyday the heat generated would drive the moisture out every day. Your tractor had old type oil without the modern additives so it stayed separated for the most part, which is why it was easy to drain off. The small amount that you have left won't cause a problem, but if you really want to clean it up good find some hard work for it. If you put cheap hydraulic oil back in you will be able to drain most of it out easily again. If you put in modern UTF it will mix as yours is now, and you will need to drain all of it annually.
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Today's Featured Article - New Hitches For Your Old Tractor - by Chris Pratt. For this article, we are going to make the irrational and unlikely assumption that you purchased an older tractor that is in tip top shape and needs no immediate repairs other than an oil change and a good bath. To the newcomer planning to restore the machine, this means you have everything you need for the moment (something to sit in the shop and just look at for awhile while you read the books). To the newcomer that wants to get out and use the machine for field work, you may have already hit a major roadblock. That is the dreaded "proprietary hitch". With the exception of the
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