The Stovebolt Site Forums The Shop Area Engine Shop 261 remote oil filter, reccomended lines and fittings

The 261 full-flow system's oil flows from the forward port on the block, the left side of the top of the canister; and, then the oil flows out the right side of the canister (where a oil pressure line might be connected) to/through a line from the canister to the rearward port in the block

This illustration is from 1960 truck shop manual. Note the directional arrows below the lines below the canister.