The valve in the filter is a by-pass relief valve. It's purpose is to allow cold oil to go around (by-pass) the filter and or if filter is plugged same thing. This is used on engines with full flow lube systems where all oil goes from pump to filter and then to engine component. Some engines have the bypass in the filter base, others have it in the filter. It is really not a pressure relief valve as that has a different function. It regulates maximum pressure in the system and your engine will also have one of those before filter and components. Like others have said, some engines have full flow, some have by pass filters. It doesn't mean it bypasses the filter, rather it just filters oil in parallel with oil gallery and filtered oil just goes to sump, not to engine components.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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