The shaft knurling suggests that a bearing locked up, at some time in the past, and the journal was damaged. I suppose it's possible that the knurling is original to the manufacture of the shaft (to save a out-of-spec part?). The shaft might not even be original to the machine.
I would put it together (without bearing retaining compound) and survey at least two widely spaced circular elements of the wheel mounting taper with a .0001" (or better) reading indicator. I would want to know what I was working with before I tried to "fix" it.
Here are two possible options for a retaining compound. Neither are suggestions. Just options for your consideration.
Amazon.com: Loctite-66010 Retaining Compound, QuickMetal(R), 6mLTube, Silver : Industrial & Scientific
www.amazon.com