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I am pretty sure it is positive ground – at some point they did change to negative, though I think that was later in the 1960s.
I am not 100% familiar with the 25hp from 1960 – based on what I’ve seen on the ’58 and ’59 35hp & 40hp I believe these motors could be equipped with several different magneto, starter and alternator options based on what the owner wanted. You will need to look to see what you have – it is possible they standardized things by 1960.
From what I’ve seen on the 35hp & 40hp there was standard (Wico) mag for the manual pull start, standard (Wico) with electric start, deluxe mag (Fairbanks Morse) with electric start, and the battery ignition automotive coil style (I don’t know who made it) with electric start and flywheel alternator. Again, this may not be comparing apples to apples so you’ll need to do your homework.
I think finding the correct wiring diagram for your exact model and mag/starter/alt options will be very helpful in answering many questions and making sure about the polarity. If you let me know what you’ve got, I’ll be happy to take a look in my West Bend stuff and see if I have something that would help you.