Have a look at this photo of the '69 GT I had. It uses the same "brake distribution valve" as your 74. The valve is just below the brake/clutch MC's. The actual brake pressure failure switch is the white plastic bit sticking out of the valve with the yellow cap (the yellow cap is not original. I capped off the switch as I didn't use this circuit in the car).
I suspect this "brake failure system" was added when the cars went to the dual-circuit braking system and the factory had to provide a means of warning the driver when either the front or rear circuit failed..........in theory anyway. Trust me, it doesn't work.
Inside that brass valve is a "piston" that separates the two circuits from each other. That piston is designed to move backwards or forwards if one circuit fails and the greater pressure of the working system forces the piston to move towards the failed system. By doing this, the piston (being metal) touches a small metal pin that's on the end of the white plastic fitting you see in the photo, grounds the electrical circuit and thus activates the dash light. The light is mounted on a push-switch only so the driver can test the lamp.
The light won't tell which circuit has failed; just that one of them has. Of course, you'll probably feel the pedal go half-way to the floor before the light ever comes on. This happened to me this past summer with my car.
After I rebuilt the car's brakes, I eliminated that distribution valve altogether and created a true dual-circuit system. As mentioned, there's likely a short in the lamp itself if your braking system is 100%.
Should you discover any fluid leaking out or around the white plastic switch, that means either one or both of the o-rings that seal the piston in the distribution valve has failed. There should be no fluid where the switch's pin sits in the valve. The o-rings can be changed with a kit available from the usual suppliers.