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According to Wikipedia:
"Historically, this practice, also known as feaguing was used to ginger up older horses in order to deceive the purchaser as to the age and condition of the horse. The horse reacts to the sensation caused by the ginger by holding its tail and head high and moving around nervously, which is more characteristic of a younger horse."
At first I have to admit I was confused to why anyone would think of shoving peeled ginger up someones rear, but after reading the above it all made sense.
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