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The water from the tell tale does NOT circulate through the block !!!!-----If you see steam from the tell tale there are major issues in the cooling system !----
That looks to be standard shift to me.----Thirsty machine that 1960? motor.----Perhaps with just a simple magneto.---You would need to do work on it yourself.----Few shops have the initiative to work on those simple machines.
This motor has been apart for some reason.----All bets are off as to the reason for that hose.-----It leads to the crankcase and I see no reason to tap into crankcase compression !
Maybe materials changed over the years.----When cap is on tight and no hose connected , the tank is sealed.---If left open they could rust.----I have seen some where insides where sad looking.----Most of the time they are pristine.
