Yeah, I don't even think the switchbox will spark if the voltage is that low.
You might try running a jumper directly from the (+) terminal of the battery to the white terminal on the Stbd side of the switchbox.
Then spin the motor over and see if you get spark.
If you do, you have a high-resistance connection somewhere. It could be the ign switch, external wiring harness, the pin connections themselves, or you internal wiring.
You can isolate the low-voltage problem by unplugging the external harness and measuring voltage on terminal "F" of the harness with the ign key in the "ON" position.
If you don't get 12V-nominal there, the problem is external to the engine. If you do, disconnect the white wire from the switchbox, reconnect the external harness, turn ign "ON" and measure voltage on white wire to ground. It should be battery voltage. If not, there's an issue with the pins in the harness or the wire itself.
I've attached a wiring diagram and here's a general test procedure for Merc CDI igns such as you 1000's:
MERCURY BATTERY-POWERED CDI TEST FOR DISTRIBUTOR MODELS
This test is for the 332-2986 switchbox used from 1967-1978 on all the inlines.
This test assumes your coil is good (problems with CDI coils are rare).
DISCONNECT BATTERY
1. Turn off ignition;
2. Disconnect all 3 distributor wires on the Port side of the switchbox (and the “mercury switch” if present);
3. Remove the HV lead from the ign coil to the center of the dist. cap (remember it unplugs from the coil and unscrews from the cap);
4. Reconnect the HV lead to the COIL only;
5. Position the free end of the HV lead approx. 3/8" from ground (block, shrouds etc), and find a way to hold it there;
6. Jumper the brown and white terminals on the dist. side of the switchbox to each other.
RECONNECT BATTERY
7. Check that you have +12V at the red terminal (even with the ign off);
8. Turn on ignition and verify +12V at the white terminal (same side as the red terminal);
9. Ground the black terminal on the distributor side of the switchbox - this should cause a spark each time you touch ground.
If you get spark with the distributor bypassed, and it won't fire with the distributor connected, the trigger is bad and the entire distributor housing assy must be replaced.
If you get no spark using the test, the switchbox is probably bad. In that case, be sure to check for correct power on the switchbox, check all connections, and check the coil's resistance to make sure it's OK.
Since you've already bench-tested your switchbox and coil, the only issues you'd have with them once reinstalled would be wiring and inadequate grounding. Make sure the ground straps for the lower cowl are installed, and also any braided ground straps between the front cowl support and the engine itself. It wouldn't hurt to make a couple of ground straps and install if you don't have any ground straps on the upper cowl/supports.
If you resolve the 8V-to-white-terminal problem and still no spark with everything (including distributor) hooked-up, I'd try the CDI test procedure thru step 9 to diagnose the distributor.
Obviously you've got to get to the point where you can get spark with the distributor bypassed, before you can be sure the distributor is causing the problem.
Unfortunately if you find the distributor is bad, the replacement is quite expensive. As I recall, the 1000 distributor may be a bit shorter than later models, but it's the rotor shaft that's different. Far as I can remember, the distributor housing (the main body of the dist) is the same as later models and you can get a CDI electronics replacement.
HTH & let us know what you find......ed