Quick check - see if it stalls with the carb choked (half way or so). My first guess is that the governor's opening the carb up more, since more power is needed for the higher gears, and it's starving for gas.
If the problem goes away while choked, then you're not getting enough gas THROUGH the carb (clean it).
(If choking it doesn't change anything, it doesn't mean your carb IS ok though.)
You might not be getting enough gas INTO the carb in the first place, less likely (since it runs in low gear), but worth checking. Check your fuel line.
I'd also check for a weak spark, and clean points. Very possible it's an ignition problem.
I'm also a big fan of adjusting the valves anytime you have any kind of engine trouble. Just because.
While it's running ok in low gear, what happens if you go up a steep hill? Does the govenor maintain a steady ground speed (increasing the rpms)?
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