If the loader will stay up with the valve in neutral, that's a sign the internal cylinder seals are good.
There is a relief valve either in the pump or in the valve. If the spring is broken or it's stuck, it will slow the lift and reduce power. That will need to be verified to get a good reading on the pump pressure.
That's not a radiator hose on the suction line is it? If so, the inside may have collapsed and sucked into the pump. The suction line must be rated for oil.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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