Firstfives.org

I can see gasket backing out of the cover below the spring bolt and of course there is oil leaking... am I losing compression or in danger of blowing the engine by driving like this?

No to both. Compression is on the other side of the block, or more about rings, pistons, head gasket, etc.

What's happening is fairly common with old, original engines. Aluminum heat flexes differently from iron and the gaskets get hard and crunchy.

The question is how much oil loss in time, and the mess it's causing. The problem, as usual, is easily fixed with a new gasket,...that requires major parts removed to get to it.

Radiator to start, and then you'll be into the, "As long as you're there: water pump, belts, thermostat, gasket set,...

The bottom cover requires removing the lower pulley and crank nut, which needs renting an elephant to turn the wrench.

If you have a car to get around, doing the fix isn't brain surgery. It takes patience and willpower. It's fun if you can take your time.

Or, just wipe up the spot on the floor and keep the oil level topped up.