The term came into usage as an equine conformation reference (see my previous.) We use "pig eye" today.

The first nautical usage we have so far comes generations later as a pulp fiction ahem... forebitter war cry(?).

Whall did not get one thing right about the well documented history of the Califonria gold rush. His sea-booted n*ggers and hog-eye barges are not exceptions to that rule. Hokum is the word you're looking for there.