Here is a diagram I made for another member.
If the points are opening & closing, and you have a (+) to the coil, the low side of the winding grounds thru the points when they close, creating a magnetic field in the primary (low voltage) winding. When they open the magnetic field collapses, and a spark is generated on the coil secondary (high voltage) winding.
There is no need for guesswork or frustration.
Key OFF. Take out the spark plug. Open the wire to the distributor at the blade connector, read Ohms to ground thru it to the distributor as you rotate the engine through the compression (power) stroke. When you read the points, the Ohms will go to under one Ohm when closed, near infinite when opened. Any readings other than that need investigation. The condenser is open circuit to DC.
Leave the distributor wire open. Lift the (+) feeding the coil. Turn the ignition key ON. Read the ohms of the lead coming in to the distributor at the open blade connector from the coil to ground; it has to be "infinite". If not, find out why. The distributor is isolated electrically, if there is a connection to ground something is either failed or mis-wired.
Turn the ignition key OFF. Again, read the ohms of the lead coming in to the distributor from the coil to ground. The key switch grounds the coil on most of these machines to force them off. Keeping the coil grounded prevents a spark from happening. Grounded is good in this situation.
Lay the coil (+) back down. With key ON, again read the VOLTAGE to ground on the wire coming in to the distributor. It should be 12.5 - 13.5 VDC. Key OFF - back to zero.
Hook up distributor wire blade connector. Key ON, kick over and verify a spark at the exposed plug center electrode to the side electrode. Anything electrical can be failed right out of the box, don't assume.
If you have spark & compression, all you need is fuel. Use some starting fluid to get a "chuff" out of the old girl. If it chuffs, start in on the carburetor. Disassemble, remove the various jets, blow out all passages with WD-40. Clean as necessary, no grit, crud or varnish allowed.
Do things methodically, a step at a time, PROVE to yourself what you think you know. If you see a solid spark, and know it's at the right time, and you prove it has compression, and the carb is clean[/u ] & properly adjusted, it rather has to run.