+ 1 on that. The only stem I've seen fail was years(early 70's) ago on a Raleigh Super Course and it failed because it was too far out of the steertube and believe it was a 'GB'. Your frame looks to be a 25 1/2" and you don't need so much height, an inch should be safe,and grease it(to prevent corrosion)where it enters the steering tube, and as said above turn the saddle clamp around. Looks like you have a nice cycle, had a smaller version in 1972, loved it, and rode it alot.
Regards