To me, it would depend on the bearings and how they are oiled. My South Bend is a lot closer in technology to the OP's lathe than to modern lathes, being that it is belt-driven and uses a hardened steel spindle running in solid bronze journal bearings. But those journals are designed to allow adjustment to balance between oil-film space and precision, with a lot of detailed instructions for doing so. Those journals are oiled using a felt wick that draws oil from a reservoir below the bearing, to which the oil drains after doing its job. The fluid pressure of the oil film when the spindle is turning tightens it right up, and the specified 7-12 tenths of end play (using 75 pounds of force at the end of an bar in the spindle bore extending 18") gets a lot closer to zero. The oil is pretty thin stuff, too. That lathe's top speed is a little over 1000 RPM, and it can run at that speed continuously for hours with the journals only becoming slightly warm to the touch.
The bearings on the motor jackshaft matter, too, but those are non-precision roller bearings, not precision journals.
I'm assuming the bearings on the lathe in question are similarly constructed, but may not have the same adjustment capability. The top speed for me would be dictated by the lubrication system more than anything.
Rick "hasn't really needed to turn anything at 1000 RPM in any case" Denney