There is no ground except through the points. The coil output is double ended, one end to 1 and the other to 4.
Confirm battery power to the coil, unplug the colored wire to the points at the coil. Remove one spark plug and set it on the engine or at least touching metal somewhere with the cable connected to it. Use a test lead, connect one end to the coil end of the colored wire and touch the other end to the engine or frame, then lift it off. When you lift it off the plug should spark. If it does, the points or wiring is bad (or the condensor has gone short). If it doesn't and you're sure the coil has power, the coil is bad or the spark is happening through the plug wire to ground somewhere it shouldn't.