Green’s Dictionary of Slang

1. (US) to drink, to become drunk.

1881		Omaha Dly Bee (NE) 15 June 2/2: ‘Let’s beer. I’m hoarse.’ And they liquidated.
1890		Music Hall & Theatre Rev. 15 Feb. 7/1: Among those who liquidated their throttles we noticed [etc].

2. to pay money.

1884		Sedalia Wkly Bazoo (MO) 9 Sept. 8/6: George Henderson got full of ‘balloon juice’ and was assessed $5. He liquidated.
1921		Capt. Billy’s Whiz Bang Mar. 11: The editor met a farmer reader on the street who was considerably in arrears with his subscription and suggested that the farmer liquidate, come across, dig up a little coin.