Yup, Carl-Erik is correct, if your mag is built correctly, the front lead goes to the rear. If you check that the points are opening at the correct point on full advance for each cylinder ( the longer point cam lobe should fire the rear cylinder) , and you still have issues, it could be a major air leak in the carb or inlet manifold. The Throttle shaft, if worn, will suck air and prevent idling, as will a leak between the manifold and inlet ports. A basic test would be to spray both areas with wd40 or easy start or similar, and see if it changes the revs. The factory manuals recommend spraying the area with gas, - have a large bucket of sand and several fire extinguishers handy if you try this method. To check if the throttle shaft is the problem, you can often cure it as a temporary fix by using small o rings on the top and bottom. They will probably not last long, but if that works you know that the shaft will need new bushes.
There are numerous more complex leakdown tests , the virtual Indian site has some detailed explanations from Cotten and others.
Stick with it, if you sell the bike, you may not find another one, and you would be able to get more for it if it is running correctly. Riding an old Indian is the perfect antidote to the stress and strain of the modern world, and time spent getting one running right is better than a yoga and meditation course.