American Motors: generator wires

Question
 just picked up this cool 64 American. the wire from the generator smokes?

Answer
The car is over 21 so it is legal to smoke. Just kidding.
If a wire is smoking it usually means excessive current flow. Use a Voltmeter and measure the output at the generator when idling. It should be no more than 14 Volts. Your voltage regulator might need adjusting. Also check for a short in the charging circuit, this could increase current flow, too. Is it possible that the wire has been replaced with one too small in diameter?
It wouldn't hurt to clean the battery terminals and cable ends; and make sure all the wires & cables are tight and clean.