I always thought it was a derogatory slur (implying slick business practices) ... from Wikipedia :
Nutmegger is a nickname for people from the US state of
Connecticut. The official nickname for Connecticut is "The Constitution State", as voted in 1958 by the Connecticut state legislature; however, "The Nutmeg State" is an unofficial nickname for the state, hence the nickname "Nutmegger".
The origin of the appellation is unknown. One theory is that it comes from
Yankee peddlers selling
nutmegs in colonial times. These nutmegs may have been the real thing, i.e., the hard aromatic seed of the nutmeg tree (
Myristica fragrans), an East Indian evergreen tree, or counterfeit wooden nutmegs; or, as has been suggested,
[1] they were the real thing but customers unfamiliar with the native form of the spice might have decided they had been sold a counterfeit after futilely trying to grind the unusually hard
[2] seed.
A popular newspaper column in the 1830s was "The Sayings and Doings of
Samuel Slick, of Slickville", which has often been cited as the source of this legend. The original story was:
[3]
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