to blue
Mrs. D. »What have you done—blued the lot?»
Mr. D. »Belinda, your vulgar expressions pain me.» (The Prude’s Progr. 37. 2.)
To blue means here: to spend, to get rid of money quickly.
Have you blued the lot? = have you spent all the money?
Cf. to be blued = to be robbed.