Since the 1862 has Magneto Ignition, the Ignition (or Key Switch) is grounded. With that in mind, the possibility exists, that you may have a bad Ignition Switch, shorted internally to ground. 
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[B]Roland Bedell[/B]
CC Models: 100, 105, 1450, 782, (2) 784, & 2072
[SIZE="4"][B][COLOR="Red"]Buy:[/COLOR][COLOR="Blue"] Made in the USA[/COLOR][/B] [/SIZE]:American Flag 1:
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