I'm going to have to refer you to the service manual unless someone else can weigh in. It has been at least 3 and probably 4 years since I did mine and two Fords and a Cub in between to confuse an already faulty memory. I am thinking that outer bearing is gone if you hear grinding. I would pull the axle and give the whole thing a once over with the intent of replacing the bearing and anything else I could get at while I was in there. You don't want to move it around too much until you get to the source of the noise. Could be the bearing but from your description it is pretty bad and could be the the surfaces that the bearing protects. Time to get dirty.
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Today's Featured Article - The Cletrac General GG and the BF Avery A - A Bit of History - by Mike Ballash. This article is a summary of what I have gathered up from various sources on the Gletrac General GG and the B. F. Avery model A tractors. I am quite sure that most of it is accurate. The General GG was made by the Cleveland Tractor Company (Cletrac) of Cleveland, Ohio. Originally the company was called the Cleveland Motor Plow Company which began in 1912, then the Cleveland Tractor Company (1917) and finally Cletrac.
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