You should check the ignition coil polarity. For positive ground the + primary terminal should go to the points. For negative ground the + primary terminal should go to the ignition switch and the - terminal should go to the points. You will get better spark that way.
The ammeter is telling you the batteries are reversed from the design polarity and its probable that the generator has been flashed to negative ground polarity, else it wouldn't charge (showing as discharge until you reverse the ammeter connections). It would have burned up the generator trying to charge with battery and generator of opposite polarities.
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Today's Featured Article - Third Brush Generators - by Chris Pratt. While I love straightening sheet metal, cleaning, and painting old tractors, I use every excuse to avoid working on the on the electrics. I find the whole process sheer mystery. I have picked up and attempted to read every auto and farm electrics book with no improvement in the situation. They all seem to start with a chapter entitled "Theory of Electricity". After a few paragraphs I usually close the book and go back to banging out dents. A good friend and I were recently discussing our tractor electrical systems when he stated "I figure it all comes back to applying Ohms Law". At this point
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