Correct. If you started the car by hand, you would retard the spark timing to after TDC , otherwise there would be insufficient momentum in the crank to get past TDC. If the engine fired, the piston could be pushed back down the way the bore ie backwards. The starting handle would then whip out of your hand, spin round and whack your arm on the other side!
The engine would (hopefully) idle albeit roughly until you could move round to the cabin to advance the timing.
There wasn't any vacuum advance or centrifical mechanical advance on the early cars. It was all done by ear.
Cranking a car was a hazardous occupation!
There was an interesting upside to manual spark levers. Canny operators would blip the throttle before switching the ignition off in order to flood the engine with fuel. When you came back to the car, it was always worth jiggling the spark lever in the hope that the cylinder on the power stroke would fire with sufficient momentum to start the car without manual winding.
A similar strategy has been 'rediscovered' by Mazda 100 years latrer in their stop-start system.
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