Seat too low by 1.5 " is not a problem -Just fit a longer seat post- But the the bars are too low now so a longer stem to give more height- and this is a quill stem. Trying to find a new one might not be that easy- and then by making these two adaptations to the bike- The effective top tube length may not fit.
Wise decision- unless the bike was cheap enough in the first place to spend money on it making the adaptions that may not have made the bike right.
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How long was I in the army? Five foot seven.
Spike Milligan