Correct. Condensers were used to reduce radio noise coming from the generator.
Kevin 1951 Chevy 3100 work truck Follow this saga in Project Journal Photos 1929 Ford pickup restored from the ground up. | 1929 Ford Special Coupe (First car) Busting rust since the mid-60's If you're smart enough to take it apart, you darn well better be smart enough to put it back together.
But you can't use an ignition condenser there...they're different with higher voltage to act as a shock absorber for the coil output without failing. The generator condenser (really just a capacitor) generally speaking had a uF value of between .1 and .5uF and generally were rated for around 50v all the way up to 1000 volts. It depended on the vehicle, etc and some included a lot of overkill. But if you have an AM radio (this all predated widespread use of FM), I'd say you would be fine with .5uF and 50volts. You would hear the whining from the brushes/armature and it would sort of mimic the sound of a siren in the background as rpms increased/decreased.
~ Jon 1952 1/2 ton with 1959 235 | T5 with 3.07 rear end