Can you provide a little more information? Such as, is the tractor and loader new to you or have you had it a while? Did you remove the loader recently? Did it work fine before? What loader is it? Have you tested the pressure of the hydraulics on the tractor?
Honestly it sounds like you have the hoses crossed up. I know you said that they aren't but are you SURE? Sometimes we look at things so many times that we just glance and assume that it's right. Done that a few times with spark plug wires myself.
Many loaders from around the time of the 504 were pressure up gravity down. So there would only be one hose for the boom cylinders. The second hose would go with a third hose and together they would control the bucket tilt.
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