I don't have a clue as to what is going on with your tractor. Just some things to "think about" tho.
Some of the early 656s had a little 7 gallon front pump. Syphon off 3 1/2 gallons for the power steering as a given and you can see where I'm going with this. There is no loader in the world that will work on that amount of residual oil.
Also, IH hydraulic pumps are built by putting a couple of steel gears into a aluminum body and that body naturally will wear away/wobble out over time.
Point being, "A known good pump" is kind of a "iffy" thing at best. 800 lbs is about what a '39 H would develop on it's best day.
Now add to the mix the fact that the first 656s were never, ever designed to run a loader off the tractor's hydraulic system. They just weren't; not enough built-in capacity.
Back to your tractor: I think as you do. Something wrong with that front oil/front pump and it's related system.
After assuring myself that the oil level and filter were okay, I'd go back to square one and buckle in a 17gpm front pump on that guy. Can't express strongly enough how much difference it will make.
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Today's Featured Article - A 1937 John Deere Unstuck - by Gary Hickman. Here is my story of how I got the pistons out of a 1937 JD B that the engine had been stuck for about 14 years: About 12 years ago my Dad gave me one of the tractors I ran as I was growing up on our farm in central Nebraska. The engine on this tractor, a 1937 John Deere "B", had been stuck for 2 years before he gave it to me. This last spring (1999) I hauled the tractor to our 2 acre lot in St. Libory Nebraska where it joined my antique machinery collection, at that time a 1929 Caterpillar T
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