Hi Shannon,
it is so hard without seeing what is happening. I don't know where that wire is going but I am tipping it was for an old points system. That terminal wire has to go directly from the coil to the kill switch on the bracket where the throttle cable moves back and forth. If you look closely in that area you will find the original wire is still connected there. Cut that wire off at the crankcase where it enters if it is still there and extend this wire to the terminal on the coil. Either replace the wire or extend it whatever is easier for you
