Just to add to Clay's post, the purpose it serves is to send 12 volts to the points during starter cranking to give a amplified/hotter spark when cold for easier start ups. When the key returns to the ignition position, it then becomes resisted again, and drops back to approximately 7 volts, as to give the contacts in the distributor longer life.
It should be in the system for that reason. Of course the system can function without it, but you could notice longer crank times on a cold engine. It would probably be a good idea to keep that part of the system operable.
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Brad Yost
1973 T/A (SOLD)
2005 GTO
1984 Grand Prix
100% Pontiacs in my driveway!!! What's in your driveway?
If you don't take some of the RACETRACK home with you, Ya got cheated 
  
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