OK, the valve you have circled is the Reverse blocker, it prevents the manual valve from being shifted into Reverse when the car is moving forward above 20 mph. The spring you used as a replacement will probably change the mph a little...just don't push the R button when rolling forward.

A '67 transfer plate won't have the part circled in black below, this area of the plate is the rear pump suction; if the plate is actually a '67, some major changes have been done to that VB. Again, pics............