Green’s Dictionary of Slang

cut nails n.

(US) alcohol, usu. whiskey.

[US]St Louis Globe-Democrat 19 Jan. n.p.: They nominate ‘bottled electricity,’ ‘lemonade with a stick in it,’ ‘jig-water,’ ‘budge,’ ‘bilge-water,’ ‘bug-juice,’ ‘rat-poison,’ ‘fusel-oil,’ ‘red-eye,’ ‘liquid ointment,’ ‘cut nails,’ ‘hard head,’ ‘benzine,’ ‘nitro-glycerine,’ ‘oil,’ ‘tea,’ ‘eye-water,’ ‘chain- lightning.’ [...] they all want the same article, alcohol, more or less diluted.