If you roll those felt oiling wicks back you should see the pushrods which ride on the crank and open the points. If your points are not opening or can’t be adjusted, either the pushrods are missing or they are severely worn.
If you loosen the clamp screw on the bottom of the mag plate, you will be able to lift the plate right off the motor. This will make it easier to see the pushrods and the corresponding notch in the crank.
