I can't locate in the manual it's purpose or maintenance - generator lubricator pad?

See pic - mine appears dried out

Purpose?
Do I need to replace?  
Lubricate I assume?

Thanks   

That's because it's a normal points ignition part...  and points ignitions are no longer on almost everything.

Lubrication schedule chart in manual should show recommendation...  I use points cam grease on the wiper...  Lubricam SL2...  NAPA used to carry it or Amazon probably does.  Designed not to fly off and contaminate points like normal oil or grease.

I simply put a couple drops of 3 in 1 oil on the fiber swab and call it good. Your safest bet is to use what Mark suggested. I’m one of those guys who tries using what I have on hand.

The tube of SL2 is a multi-lifetime supply...  I don't know how many times I've used it and it still seems new. 

That said, Schu is correct....  factory manual recommends a very light application of light machine oil.

 

 

If memory serve me right, new points sets used to come with a sealed little blob of grease to wipe on the wick. I've only ever oiled it though. In theory i should have lots of little blobs of grease left over from years gone by.

From what I remember, from working on distributors of old cars, is you put a little dab of that grease on the rubbing block. I don't remember them having a felt pad like motorcycles have. It seems to me that felt pad is more designed for a drop or two of light oil, not grease. I didn't have any three-in-one on hand, so I just used a couple drops of 30 weight.

Here's some showing the grease supplied--thin as it is.
www.ebay.com/p/1811863095

It could be that little package contains some lightweight machine oil :0)

I checked my service manual and it also mentions "a light application of lightweight machine oil to the points lubrication wick" after the first 1,000 miles, then every 4,000 miles thereafter.

I would imagine lightweight machine oil, little bit of 30 weight, or even the appropriate grease on the wick would be fine, though grease isn't going to really absorb into the felt like lightweight oil would.