There is a shoulder on the spindle against which the collar to the left of the small spindle gear should sit. Loosen the set screws in the collar and push the collar toward the tailstock without rotating it and re-tighten the set screws. Pull out the direct drive pin and confirm that the pulley is free to spin on the spindle.
There is an oil plug at the bottom of one of the pulley grooves. There have been a few reported cases where a PO has somehow forced the set screw/oil plug on down and against the spindle, which locks the pulley to the spindle. If you pull out the direct drive pin, engage back gear, and try to start the motor, either the motor stalls, the belts slip, or the pulley slips and the screw damages the spindle. If this has been done to your machine, back the oil plug out three or four turns, and find a short (3/16" or 1/4" set screw to put down in the hole and lock the oil plug. But hopefully this hasn't happened to yours. If it has, there is nothing to do about it at this point but if you ever pull the spindle, you will almost certainly have some difficulty in getting the spindle through the pulley. And you will need to replace the damaged pulley bushing that results when you pull the spindle through it.
At this point, since odds are that it hasn't been done in years, oil the pulley bushings. Pull out the direct drive pin and slacken the belts. Remove the oil plug from the pulley groove. Put about three squirts of SAE 20 ND through the hole and reinstall and tighten the plug. Tighten the belts, start the motor and let it run for 10 or 15 seconds. If you haven't done this in the past month, repeat twice.
Slacken the belts, pull out the direct drive pin, and check the end float of the pulley. The books don't give a figure but there should be definite movement, maybe 0.003" to 0.010". The only adjustment would be to move the bull gear, which might take it out of alignment with the small back gear.