Ford recommends hydraulic oil meeting CNH 134D (or later) specs but many folks do use Type F ATF fluid. No doubt the PS system is very badly contaminated with water. You will need to flush it with clean fluid many times to clear it out. Don't forget to change the filter beneath the oil in the PS pump reservoir (Eaton pump). If the PS pump belt has been removed (not uncommon) either the system leaks badly, the pump has failed, or both.
If your tractor has two hydraulic control handles beneath the seat and beside the lift control handle, it has a dual spool remote valve. There are various types but all allow operation of a remote cylinder with either spool. Note, FEL operation will be slow using the tractor mounted 3-4 GPM pump but this is how it was done for decades.
961 tractors have become popular with Ford collectors in recent years.
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Today's Featured Article - Grain Threshing in the Early 40's - by Jerry D. Coleman. How many of you can sit there and say that you have plowed with a mule? Well I would say not many, but maybe a few. This story is about the day my Grandfather Brown (true name) decided along with my parents to purchase a new Ford tractor. It wasn't really new except to us. The year was about 1967 and my father found a good used Ford 601 tractor to use on the farm instead of "Bob", our old mule. Now my grandfather had had this mule since the mid 40's and he was getting some age on him. S
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