Without knowing the tractor or what has been done to it over the years the symptoms you described sound like a failed ballast resistor.
The following applies to an engine with a 12 volt system which will usually have a ballast resistor installed before the coil.
There is a bypass circuit which will apply full battery voltage to the coil during cranking to make up for the voltage drop caused by the starter motor.
When the ignition switch is not in the cranking position power is fed through the ballast resistor to the coil to extend the life of your ignition components.
If it is running as long as you are holding it in the crank position it would indicate the bypass circuit is working properly.
The fact that it runs with a power wire direct to the coil also indicates there is no power being supplied to the coil from the ballast resistor.
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Today's Featured Article - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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