One of the most common problems that I encounter with the antique banjos is that the dowel stick-to-heel joint glue had dried out and come loose. The allows the neck to angle upwards too much, resulting in unplayably high action (1/2" or more at the 12th fret). To fix this, you must remove the dowel stick (not always easy, see my article on it), and reglue it at an angle giving proper action. I don't measure the angle, but lay out the banjo on a simple jig, blocking up the neck and head to give an action on the order of 3/16" at the 12th fret.
Now, there are various ways to get the correct fit of the dowel stick. A common and fairly easy way to do this is to use Titebond glue mixed with sawdust to form a paste about the consistency of toothpaste. The paste is then smeared liberally on the dowel stub and inside the receiving hole in the heel - some should ooze out when you assemble it. This fills all the voids in the joint and dries very solidly in a couple of days.
Some say this is a half-assed approach to repair. The best way is to plug the heel and redrill it. I guess that's true if you like to spend your time building jigs and buying very large drill bits. Another thing you can do it is glue thin shims on the dowel stick stub. The idea is to have all solid wood-to-wood contact with no reliance on the adhesive as a filler. I can see that, but as a pragmatic matter, the sawdust makes the Titebond into a good, reliable filler.
I wish to report that I did have one of these "glue & sawdust" joints fail fairly recently. It was on an 1890-ish no name banjo that I sold to a guy in North Carolina. Shortly after getting the banjo, he reported that the action sprung to about 5/8", which was much high than when I shipped it. I got him to return it to make it right. Upon brief inspection I easily saw what the problem was.
This is poor work. What I discovered was that the heel hole was deeper than normal, so that there was a good bit of space between the end of the dowel stub and the bottom of the hole. This is were most of the glue/filler went instead of all around the circumference of the stub. The drawings hopefully illustrate this a bit better.
To fix this, I pried the chip out of the hole and glued back in place. Then I cleaned the hole out and inserted a plug into the bottom so that the dowel stub was almost touching it. Then I glued thin wooden shims on the the upper and lower surfaces of the dowel stub, and then slowly filed the shims to get a good solid fit. Finally, I mixed a new batch of sawdust and glue and assembled the joint as before. Now it is solid and strong and will not be prone to failure.
So, the lesson here is simple. Be sure you add enough filler. Check the depth of the heel hole relative to the stub length. If the hole it too deep, plug it. Thanks for reading this far.