Since no one else has replied to this I will take a stab at it. Do you have an owner's manual? Belt tension should be covered in there. For instance on my mower, it says "1/2" of movement of belt on longest span between blade pulleys with 10 lbs pressure." I cannot imagine a belt being as loose as you describe. Some manuals are available on the internet.
I Googled "38" Bolens belt tension" and quiet a bit of info came up.