Ressurection of a Lionel 1032 Transformer

Good evening. I would like to repair my Grandfather's type 1032 transformer. It stopped working about 20 years before I was born, and the power cord was pretty crispy, so I have not tested it. I have it apart and removed the old, crispy, rotten cord and noticed something. The wall power cord wires attach to two metal grommets, and the grommets have small wires attached to them. The one on the right goes somewhere, but the one on the left does not. (SEE ATTACHED PICTURE) Is this the problem? If so, where should that small wire be re- attached?

TL;DR Where does this wire go?

John

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