voltage at alternator reading

You should also get the same readings with the ign switch "on" and the engine not running.

With the engine running (alternator charging) you should get 14.0 to 14.5 volts at the BAT and #2, and 11 - 12 volts or so at #1.

As other suggest, with the engine running many digital voltmeters read incorrectly on account of system "noise" - an old analog meter is the preferred tool here...

Your Voltmeter (+) terminal SHOULD NOT be connected to the former Ammeter terminal wires because it will slowly discharge your battery over a long time (about 0.001 Amps). The Voltmeter {+} terminal should be connected to an ignition SWITCHED circuit, such as the ignition switch terminal that feeds the ignition coil ciruit. This should be the same connection that feeds through a resistor, or "idiot lamp" to the #1 terminal on the Alternator (unless you have a "one-wire" Alternator).
All of the other connections I described before are correct (connect all of the Ammeter wires together when the Ammeter is removed).

An ammeter is almost an electrical short circuit between its terminals and carries the full alternator charging current to the battery. A voltmeter is almost an open circuit (high resistance) and will carry (at most) about 0.001 Amps reading a full-scale voltage. If I understand you correctly, what you did was to put an effective open circuit (Voltmeter) between the battery and the Alternator by installing a voltmeter in place of the ammeter.

The wires that you removed from both terminals on the Ammeter should all be connected directly together (a short circuit in place of the removed Ammeter) and then add the +(HOT) terminal on the voltmeter with them (i.e. tie all the wires to the Voltmeter (+) terminal). Connect the other (-)voltmeter terminal to a ground (tractor frame).

Your battery seems to be either in need of a charge or has lost its charging capacity due to old age or a defect, according to your description. Hint: Clean your battery terminals & posts to "bright and shiney" and examine the cables for corrosion or broken strands first.

Be Safe! dont work with the wiring without first disconnecting at least the battery Negative cable.

NOTE... a very SMALL point gap (LONG dwell) will heat the coil up more than a larger (correct) breaker point gap.

P.S.... Take my word for it on the wild digital meter readings, and don't obsess over them. You are by NO means the first person to discover this "dark side" of many digital VOM's.

thanks

Even a cheap analog meter is more than accurate enough for this use, and won't be affected by the EMI.

You want to see about 14.5 Volts on the large output stud, and the #1 and #2 terminals with the engine running.

With the engine STOPPED, the voltage on the #1 ("switched excite") terminal should drop to zero.

If it doesn't drop to zero, the alternator will remain "excited" and drain the battery.