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I am restoring a webster-chicago wire recorder from 1956. It's in very good shape, powered up, but shorted a 1 Amp heathkit-type plug fuse when placed into run mode. I have new rectifier and 3 additional tubes for it. Basically I am replacing capacitors and resistors. These are typical paper/wax capacitors.
I have run into the pictured 0.01 MFD metal capacitor with its case grounded. It is in the microphone portion of the schematic. I am assuming this was an early attempt to shield this part of the circuit, prevent hum and/or distortion. The cap output wire is shielded in a coaxial grounding sheath as well which I was planning to retain.
Is there any reason I could not replace this with a typical polypropylene cap, (and dispense with the case grounding obviously)? Or would it be wiser to leave the capacitor unreplaced, assuming it tested ok?