Never had much luck with Mercer dial guages at my last employment – they all seemed to fail that way, so I would suggest not wasting your time and bin it.
Webought the guages new & independantly certified by a local specialist test company, as they were used for final acceptance of alignments on rebuilt CNC machines. The guages were treated carefully and stored in the original packaging between uses but, almost inevtiably, the next time they were brought out the plunger would be rough & sticking.
We gave up on Mercer guages eventually after this had happened several times & went to Mitutoyo guages. Never had to replace one of those.
From (rather distant now) memory, I think it was the plunger racks that were the problem – very, very fine teeth.
Nigel B.