This 16T gear is on the input (left) side of the box, on the shaft with the main gear-stack. The gears on the left are 16/32-16/32-16, turning independently on bronze bushings, then a cast boss extending from the case, then the multi-gear progressive stack which are keyed to the shaft.
It meshes with a 32-tooth gear on one side and the change-lever gear on the other side. The power flow goes:
Input stub shaft gear Center shaft, left side (the gear in question is here) left change lever gear Change lever shaft Right change lever gear stepped gears gear on leadscrew or gear on power apron drive shaft.