I agree, we need specifics. Do you mean, it will lift something, and then if you hit the clutch or shut engine off it drops, or does it lift then drop, with the lever still up, or do you pull the lever up to lift and then when you let the lever go it flops down dropping the load.
More details = better diagnostics.
Also, is the hyd cover and pump for sure from a 2n, and not an 8n. The serial number is on the engine, and all N engines from 1939 thru 1952 swap, I have talked to many 2n owners trying to help them only to find out they had an 8n with swapped engine.. etc.
Also note, the lift cover and pump can swap as a pair from 9-2-8 n. But you cant mix a 9-2 n pump and 8n cover, or 8n pump and 9-2n cover