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 - The David Brown Rose Badge - by Samuel Kennedy. In the 13th century civil war was raging in England. Two English noblemen were involved in a conflict which became known as the War of the Roses. The Duke of York had as his emblem a white rose and the Earl of Lancaster had a red rose. Today the white rose is the official emblem of the county of Yorkshire and the red rose has been adopted by the neighboring county of Lancashire.
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