If you ground either/both black wires that are coming from the positive side of the coils/points the motor dies. Grounding can be accomplished by connecting them together since one set of points is always closed and grounded.
One of these point wires is connected to the center terminal of the cutout switch and then through the harness to a M terminal of the ignition switch. the other is connected to the other M terminal of the ignition switch through the harness. M terminals are connected to each other through the ignition swith internaly when the key is off thus grounding the points.
The cutout switch works with vaccume, too much (overrun) and it physically connects the center terminal to the block and kills the motor by connecting the points to ground. If there is cotinuity between center terminal and the block the cutout is bad. The outer terminal is a isolated terminal to bridge between the Safety SW and a start lug on the starter solonoid, which grounds the solenoid terminal when throttle is too far open to be in neutral and thereby keeping the starter from cranking in gear.
Also some engines temp sensor in the head that connects to the center terminal of the cutout to kill/connect points to ground in a over hot situation.
No Battery? No Ignition sw? no harness? Dont worry the engine doesn't net them to run. Manually Pull to start. Connect point wires seperatly to momentary type Kill switch, that connects them when pressed, to kill engine.