The bypass circuit through the ignition switch prevents the engine from running momentarily if the starter pedal is pushed with the switch in the off position. It's a safety factor, not a potential overcurrent situation. Without the bypass circuit going through the ignition switch, the engine would be able to run anytime the start pedal was pushed, intentionally or not. It's an early version of the neutral safety switch and/or a clutch switch on later models.
Jerry
