Yes..your bearings are not rolling free apparently. They are grabbing the inner race which threads on to the axle.
You adjust the bearings from the non-brake drum side, by turning the inner race in just enough so you have a very little wiggle play perceptible. Thewn you hold that inner race cone with a 14 or 15mm open end wrench if you have one thin enough(I grind mine down)while you tighten the locknut(usually thin,large nut) up against that cone nut which is the inner race. With this tight, you check the amount of play. There should be a TEENY,TINY amount, and no roughness felt from the ball bearings.
You probably should just order new axles and balls and bearing cups(outer races) and cones(inner races) and dust seals and do the job right. To adjust this correctly, you need to first lock the locknut up against the `brake hub side' bearing so it won't turn while you final adjust it from the other side. I always measure how much axle I need sticking out on each side before i take the old bearing cones off.
This isn't a job for a novice, as you can have a rear wheel lock-up if you do it wrong. Any good bicycle shop can do the bearing adjustments. don-ohio (:^)