Word Origin & History
O.E. dag "dough," from P.Gmc. *daigaz "something kneaded," from PIE *dheigh- "to mould, to form, to knead" (cf. Skt. dehah "body," lit. "that which is formed," dih- "to besmear," digen "firm, solid," originally "kneaded into a compact mass;" Gk. teikhos "wall;" L. fingere "to form, fashion," figura "a
shape, form, figure;" Goth. deigan "to smear"). Meaning "money" is from 1851. Doughface was the contemptuous nickname in U.S. politics for Northern Democrats who worked in the interest of the South before the Civil War; it was taken to mean "man who allows himself to be moulded." The source is an 1820 speech by John Randolph of Roanoke, in the wake of the Missouri Compromise.
"Randolph, mocking the northerners intimidated by the South, referred to a children's game in which the players daubed their faces with dough and then looked in a mirror and scared themselves." [Daniel Walker Howe, "What Hath God Wrought," 2007]