Thanks guys I drained the oil today, added some cheap 40w oil, drove it around the block a few times and the white smoke seemed to go away a bit. Is there a chance that once I flush the oil again and refill with some good quality oil and maybe an additive the smoke will slightly go away? Once again compression was really good and even according to flathead 6 specs.
I will try different things and see if it gets worse. It runs great. Newest thing I found out about this car is that It has a 3 speed tranny with an overdrive and according to the manual you cannot use SEA80 Gear oil because it has black oils and contaminants that can damage the overdrive. It calls for a SEA50 Cold tested engine oil.. or SEA50 aviation oil.
Would the SEA80 gear oils have the contaminants described in the 1940 shop manual?