An improved towel dispenser includes a rotatable driveshaft mounted in a one-way clutch bearing fitted with a pinion which engages a vertically oriented press bar assembly including at its lower portion a rack which engages the pinion to advance paper towel through a dispensing nip upon pivotable motion of the press bar assembly. A dispensing chute located below the dispensing nip includes a lower shelf configured to direct web forwardly toward the front portion of a dispenser. The gear rack is preferably an internal gear rack integrally formed with a unitary press bar assembly member. The dispensing chute is configured such that an angle between a cutting-blade and the outer lip of the shelf makes an angle with a vertical of at least about 25°.