1960 Pontiac Catalina Flattop Battery Sparks While Attempting To Start

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When attempting to start my engine a big spark occurs at the battery terminal. Starter motor and starter solenoid don't kick in when turning the ignition to start the engine. I have removed the starter motor and solenoid but seem fine. Tested on the bench and functions perfect. Battery is fully charged. Battery terminals +- are connected correctly and tightened. Battery + and - leads to battery and chassis are perfect. Removed ignition switch and tested perfect. Installed everything back and when attempting for another start, again a big spark from the battery terminal occurs. Only thing I don't understand is a yellow wire connected to the junction block going to the ammeter (see wiring diagram) together with the battery positive lead and starter motor positive lead, measuring a ground to the chassis. What can cause this, or why does the battery pull these big amps to start a big spark?
 

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Have never seen a 60 starter circuit but it sounds like something is not correctly insulated at the junction block. Was the engine starting with no problem and this is a new problem or you are restoring the car and first attempt to start?
 
Have never seen a 60 starter circuit but it sounds like something is not correctly insulated at the junction block. Was the engine starting with no problem and this is a new problem or you are restoring the car and first attempt to start?
 
I'm not restoring the car. Car has been on the road for years and never had any issues. Only thing I can guess that during a jump start the external battery could have been reversed connected to the battery terminals and may have caused some damage. Wondering why the yellow wire on the diagram has a has a ground to the chassis measuring with a fluke multimeter? Yellow wire is connected to the positive junction block and should not make a ground to the car chassis. Until now I can't find the issue....
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Can you disconnect one wire at a time and recheck your measurement? The problem though sounds like it's at the junction because that's where you see the spark.
 
Can you disconnect one wire at a time and recheck your measurement? The problem though sounds like it's at the junction because that's where you see the spark.
The spark occurs at the battery terminal, not at the junction block.
 
Have you tried removing all fuses to see if same thing occurs?
You state no problems with car but apparently there was an attempt to jump start it. What prompted you to disconnect the battery cable to start with?
 
Have you tried removing all fuses to see if same thing occurs?
You state no problems with car but apparently there was an attempt to jump start it. What prompted you to disconnect the battery cable to start with?
Installed battery voltage was a bit to low to get the car started. Connected jump wires from external battery to installed (and connected) car battery.
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Installed battery voltage was a bit to low to get the car started. Connected jump wires from external battery to installed (and connected) car battery.
OK, you jump started the car but why did you disconnect the battery cable? Did the car start with the jump? You mentioned reversed cables, have you disconnected the alternator to see if it was fried?
 
The spark at the battery terminal, I assume positive terminal? What does the spark jump to?
Did you clean the terminal?
 
The spark at the battery terminal, I assume positive terminal? What does the spark jump to?
Did you clean the terminal?
Terminals are clean and connected correct and tightly. Spark jumps on positive terminal itself. Looks like a big short and smokes a bit.
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Any chance the cable end is corroded under the insulation?
 
Any chance the cable end is corroded under the insulation?
It was slightly and I cut it off. Replaced the terminal cable connector. I will start to replace all cables this week to be sure everything is as should.
 
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