Check the resistance of the primary circuit. Points operate best at 4-5 amperes. For a running tractor with alternator/generator that's 14v/5 amps max or 2.8 ohms. If the coil and ballast resistor aren't giving you that much resistance, increase the resistance of the ballast till you get it.
Otherwise a bad condenser will do it. The condenser is there to absorb the high voltage of the arc when the points open.....voltage generated by the coil when the points open and the current is interrupted. The nature of the coil is that it attempts to keep the current flowing by generating whatever voltage is necessary....within it's limits, hence a high voltage arc across the points.
There is a voltage where, if high enough, will cause excessive pitting. The idea is to condense, or absorb that initial spike of voltage in the condenser and then give the energy back to the circuit at a lower voltage after the initial spike.
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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