Charles: I don't have your answer, however I've seen a trouble shooting section of a service manual on 3 point hitch of 404, (same era). I'm not certain but it must have been Blue Ribbon Service manual or an IT manual. It was about 7-8 pages of just about everything possible that could go wrong with the hitch. They covered slow lifting, slow lowering, not lifting, not lowering, etc. Very, very detailed, and I'm sure the same is available for 504.
I agree it has to be something like an O ring that popped over night type of thing. Probably the O ring plugged somewhere that oil has to go when lowering.
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