I also remember, on a 1976 15hp model I had, which is identical to yours except the carb, that one thing I liked about it was that it gave me a good indication of the condition of the impeller when I ran it. The indication was this. When I was cruising down the lake at a fairly constant speed for a while, I could look back and see that the spray of water out the exhaust changed a little bit. This is a little hard to discribe but if you can think of a water spray as a triangular arc, the main flow of that arc seem to move away and then towards the back of the motor, as I assumed the thermostat opened and closed. The spray would kind of swing from more pointing down to pointing up, by a small amount, as that t-stat opened and closed. As the impellar got more used, after about 4 or 5 years or so, that arc changed in a way that the spray wanted to be more down, closer to the motor. To the point that when the t-stat was closed it was almost impossible to see the spray. It kind of had a guy worried that the pump had failed for a minute or so until the t-stat opened more and the spray moved away from just dribbling down the back of the motor, and was now shooting away from the motor in better view. So the range of the arc would change depending on the power of my impeller. That was my indicator that it was getting to be time to change the impellar, since I assumed this observation was due to a loss of power from that impellar due to usage. When I did change the impellar the spray arc resumed its more visable spray whether the t-stat wa opening or closing.
Anyway, that was a story to highlight that water should come out the exhaust port even when the t-stat is fully closed, however, when it is fully closed (never like that when the motor has warmed up) the spray is more of a mist then a spray. Very hard to see but easy to feel if you put your hand back there. When the t-stat opens, about a minute or so after start up depending on the temperature of the water, water should spray out that exhaust hole, whether the t-stat is opening or closing. Again, the t-stat should never fully close when the motor has been warmed up. Only reduce the flow of water, not stop it. You should always be able to see water spraying out that exhaust hole.