+1 on suggestion to replace bearings. Bearings don't usually "sound dry". If they are noisy, they need replacing as suggested. Get good brand name bearings such as SKF etc. not cheapie no name far eastern items off the interweb that are of unknown quality.
You will find a lot of bench grinders use the steel shielded bearings, which are not 100 per cent sealed due to small gap around the ID of the shield. This is to reduce torque requirements on start up. But it does allow some grit to get in. Nonetheless, best on the motor to replace with same type of bearings you take out.
Edited By Hopper on 01/07/2017 02:00:14