I've repaired a flathead with a bad crack in the cylinder wall. It's easy if you have the machinery. You bore the block out another .100 oversize and press in the sleeve. Then bore out the sleeve to the original (.040 over) bore size.
I think we charged around $300 for one sleeve and the customer did the tear down and reassembly himself. It might be cheaper to find another block to use your parts on.

Broebros.
Ford didn't make the 60 hp motor in 49. They were made from 1936 to 1940. They are much smaller than the 125 hp Merc engine. They weren't very powerful in a full sized car but were very popular for midget racers and as a powerplant for things like that welder. It was probably rebuilt before it was put into the welder.
It's a good deal for $400 but it requires a transmission that is unique to the small engine and won't bolt up to any other one.
The midget racers used an "in and out box". A one speed transmission. The output shaft turned at the same rpm as the input. If the welder has one of these you could make some money on ebay.
Even without a tranny it could be valuable to someone who has or is restoring a midget.
AL