An H has one way hydraulics. The "liftall" pump pushes oil out to lift an implement when you pull the lever, then when you push the lever in the weight of the implement forced the oil back through the same hose. (There are two outlets on the side so an implement could be lifted by two cylinders, like a cultivator with side and rear sections, but they both work in the same direction.)
The reservoir only holds about six quarts of oil. So if you have a cylinder that needs more than that you need someplace to hold the extra oil. The handiest place is to use the opposite end of the cylinder that is being pressurized; extra oil is stored above the piston and is pushed back into the pump as the piston moves one direction, when the piston moves the other direction the oil that was pumped in under pressure is forced back into the pump, then overflows through the hose on the fill pipe and flows back into the cylinder.
I assume your 3pt hitch can lift but doesn't have down pressure. That's because the side of the cylinder that would push it down doesn't get any pressure from the overflow pipe.
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