A ghost, a bugbear. A caddis is a grub, a bait for anglers.
“Poor Mister Leviathan Addy!
Lo! his grandeur so lately a sun,
Is sinking (sad fall!) to a caddy.”
Peter Pindar: Great Cry and Little Wool, epistle 1.
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Entry taken from Dictionary of Phrase and Fable, edited by the Rev. E. Cobham Brewer, LL.D. and revised in 1895.