Felt doughnut on balancer

Every engine I worked on for 40 years or so used these inside the timing cover...keeps oil from weeping out the front seal...no useful purpose if the oil is already out of the seal. Installing it in front of the oil slinger sandwiches it between the timing gear and front cover. The oil splashes it a bit and keeps the fibers intact...the heat also helps.

The timing cover seals used to also be made of felt.

But what do I know.... I'm still a rookie. Did my first valve job on a Buick straight 8 in 1958 when I was nine years old so I'm still learning.