Well Dave..... yes, it is supposed to run to the ignition switch. Shouldn't have ever been connected to the S/G. Now, I'm not where I can look at a 147...I have one at home though. But, I would think it would just go into the harness near the S/G. I see what appears to be the other end of the wire. HOWEVER.... You have much bigger issues than just that. It appears you have bare wires at the S/G on the battery terminal. I'm not sure what the rest of the wiring looks like, but that is a dead short waiting to happen. If you don't get that fixed, you may be looking for another tractor. Unhook the battery, and see what the rest of the wiring looks like. If you need to get it going, you can run a jumper from the coil wire direct to battery positive to run it to move. Don't forget you will have to unhook the wire to shut it off. I strongly suggest getting a hold of member Mlamar and ordering a new wiring harness. Doesn't look like yours is worth trying to patch up. Looks like the wire coating is very brittle.
If you refuse to replace the harness, I would bare minimum get the wires at the S/G repaired, and run a new coil wire from the ignition switch all the way to the coil.
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