I just finished building some hinges this past week. My forged piece,(or the hinge strap) I drilled up to I believe 11/32. When reassembled, per tech tip and Jerry Kassis video on Youtube, there is a slight amount of movement, but not much.
My understanding is that the pin is stationary in the housing, while the strap moves on the pin. I assembled with a little high temp bearing grease on the pin, and some anti-seize compound, so I feel comfortable they'll last another 60 years.
Check out the Jerry Kassis youtube video. it may help. Hope this clarifies things!! Mike