I agree with Brino, that looks like a mounting stud for a change gear.
Have you shown us all the parts you have for the lathe? If so, you are missing the back gears, and the change gears for thread cutting. Not the end of the world, the back gears are used mainly for thread cutting, but you will be able to use the lathe for everything but thread cutting.
Here are some more pics. The back gears reduce the speed by about 4 1/2 times.
The lever on the front of the carriage opens and closes the half nuts. The half nuts are shown both open and closed.
There are holes in the bed to mount a rack, which is missing, and I don't see anything on the carriage that would connect to the rack anyway, so it is a mystery to me as how you would move the it, other than using the feed screw. I suppose you could add a hand crank on the end of the lead screw, but it doesn't look like it was designed to be used that way. There is a hole in the apron, but it is in line with the lead screw, so I don't know what it is for.
I was given this lathe with most of the pieces in a coffee can, so I am having to figure out how it all goes together too.
It would look cool in the living room, (maybe as a lamp) but I don't think my wife would think much of that idea.
Besides, it is a nice little lathe, and in pretty good shape, so it would be a shame to not restore it to working condition.