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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