President Nixon's shift in economic policy has been well received by directors, bankers and businessmen in the Third District. Most however, expressed surprise at the comprehensiveness and magnitude of the policy changes. Some businessmen candidly admitted that the wage-price freeze will cause management problems they had not consciously thought much about previously; nonetheless, the general mood appears to be one of "cooperating" rather than "complaining."

The reaction to the President's speech has been overwhelmingly favorable in the Third District. Typical of some of the responses are: "Delighted to hear it," "Best thing we have had so far," and "Necessary." The general feeling is that the new policy actions will go a long way towards restoring confidence in the economy. One large retailer said he believes consumers would be spending more because of the psychological uplift. A banker reported that his board of directors gave the "go ahead" to a new building in light of the President's actions. Several manufacturers indicated that the size of the proposed investment tax credit would cause them to review their capital spending plans. Another banker predicted that interest rates would go down because inflationary expectations will likely subside.

Although many people we contacted felt the President "had to do something," few anticipated the extent and boldness of his actions. Most expected some additional stimulative measures from the fiscal side; but not including something like revocation of auto excise taxes. Likewise, some form of wage-price restraint seemed probable to them, but not an
all-out freeze. Also, the few who had had time to think about the floating dollar and excise tax on imports were stunned.

Several executives, although previously advocating wage and price restraints, said they really had not thought much about the management headaches they would face in the event of a freeze. These problems, they said, are now coming into sharper focus. But, despite the confusion and headaches they believe lie ahead, the general mood is one of cooperation and optimism.