Revision 8069023 of "Scuttlebutt" on enwiki

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From ''Scuttled'' (open) ''butt'' (cask); The term refers to an open barrel placed aboard British warships to supply sailors with grog, a mixture of rum and water. The scuttlebutt served as a focus of congregation for thirsty deckhands aboard ship, and was a common place for the exchange of rumors, gossip, etc. 

It was from this that we welcome the term in modern usage, i.e., rumor, loose talk, inside story.