Speedy, I'm going to be doing some guessing, but are the loader valve ports labelled (where the 3 hoses come out)? I suspect you have an "in", "out", and "PB". If so, the "in" hose goes to the pressure source on the tractor and the "PB" is the return line, but then you have to route the "out" hose from the valve to dump back into the reservoir. I don't have a manual for that tractor and loader, so I don't know where you have to go to return the oil to the reservoir.
Bird