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Take down a peg or two

Posted by Camo on September 30, 1999

I was led to understand that it was a naval term, too, but that it had to do with the steins the sailors drank from - that there were holes on the side of the mug and if a man were in disfavour his peg would be lowered so that he would not get as much to drink. Did anyone else learn that interpretation?