The relevant equations for this problem are (from Mott, Machine Elements in Mechanical Design):
Ssr = T/Zp
Zp = pi * D^3 / 16
Ssa = Ssy / Fs
Ssy = Sty / 2
where
Ssr = resulting shear stress (psi)
T = applied torque (in-lb)
Zp = polar section modulus (in^3)
D = diameter = 1 in.
Ssa = allowable shear stress (psi)
Ssy = shear yield strength (psi)
Fs = safety factor
Sty = tensile yield strength = 30000 psi for annealed 316 SS
Combining equations, setting Ssr equal to Ssa, and solving for T gives:
T = (Sty * pi * D^3) / (32 * Fs)
or in this case
T = (30000 * pi * 1^3) / (32 * Fs)
= 2945 / Fs (in-lb)
= 245 / Fs (ft-lb)
The safety factor (Fs) that you use depends on many variabless including the uncertanties in your loads, restraints, and material properties, whether the loads are cyclic, and what harm will occur to people or property if the part fails. I use a safety factor of at least 2 for almost all applications, and more typically 3 or higher.
For your benefit, please check my math.
ATL