I got my first M37 a few weeks ago and had been dealing with the same dilemma until I discovered this thread about putting a different carb on the 230 . . .
http://www.steelsoldiers.com/showthread.php?56047-18-mpg-m37-quot-plus-quot-more-power!!!&highlight=
I'm hoping regearing and swapping the carb will leave me enough power to turn my 11.00-16s in 4th gear going up mild hills at 55 mph and get at least 15 mpg on the flat. For now I'm going to keep it at 50 mph or lower to preserve my engine.
I was going to regear to 4.89s and repower with a Cummins 4BT but then discovered I would have to either put an OD box in with the original trans or do a trans swap (Ford ZF-5 was what I was planning on). The project was already approaching $5000+ in the planning stage just to get a few more mph and mpg verse running the Holley/Weber carb mentioned in the linked thread. Not worth it in my mind. I'm going to try the carb swap first and see what happens.
Here is a handy equation to calculate your engine RPMs based on tire size, axle gearing, trans gear, and vehicle speed:
vehicle speed (ft/min) / advance (ft/rev) X Axle ratio X Trans gear = Engine RPM
Speed: Vehicle speed in feet per minute
Desired speed in mph / 60 X 5280 = Desired speed in ft/min
55 mph = 4840 ft/min
60 mph = 5280 ft/min
65 mph = 5720 ft/min
Advance: this is the distance the vehicle moves forward per revolution of the tire
9.00-16 tire is about 35" diam (Circumference= pi x Diam (ft) = 9.1583 ft/rev (don't forget to convert your tire diameter to feet)
11.00-16 tire is about 39" diam = 10.205 ft/rev
Axle ratio:
5.83 or 4.89
Trans gear:
1st - 7.02
2nd - 3.57
3rd - 1.70
4th - 1.00
Example 1: 55mph, 9.00-16 tires, 5.83 axles, 4th gear
4840 / 9.1583 X 5.83 X 1.00 = 3081 RPM
Example 2: 55mph, 11.00-16 tires, 4.89 axles, 4th gear
4840 / 10.205 X 4.89 X 1.00 = 2319 RPM