Found an old tool - What is it?
If I can think on this : while it looks like a military field operators wire spool for a communication link or possibly demolitions (not as likely).  This is neither of those items.

The clip at the handle actually is the wire holder (or shall I say Fishing Line Holder). Hook the Line there and then you can spool it onto the reel and catch the fish with out losing your line. Yours is in rough shape ..used well..must have had lots of fish..

What you have is a Vintage Surf Fishing Reel .. here are several pictures and a link to ebay ..




Links - this link in time will fail so I am posting it for the op .. 

http://www.ebay.com/itm/like/192292267334?vectorid=229466&amp;lgeo=1&amp;item=192292267334&amp;rmvSB=true