Steering gear box leak

I removed my complete steering gearbox on my 41 Mercury, column, shifter rod and steering wheel so I can get it painted. This was quite a task. I add some 140W gear oil. Now I have a leak at the steering shaft where it goes into the gearbox. I had it sitting on the floor at an angle. Is there a seal there or was it the angle I had it sitting.
 

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There is just a felt type of seal that is really just a dust seal, nothing to stop the lube from leaking out.
 
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