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Hi Beth! Preserving spaces is the transcribers' call. We note in the instructions that volunteers should not try to mirror the layout of pages because we are transcribing for search and readability. Spacing is more of a layout than content issue. It does not affect search, so I would not worry about preserving spacing, unless you think it would aid in the document's readability.
Speaking for myself, as a reviewer, I would approve a page that transcribed the spacing either way. As a transcriber, in most cases I would default to our 20th century spacing for punctuation to aid future researchers in reading the document.