This is a slight twist to now she's talking referring to the sound of the waves against the sides of the ship. It is possible, even today, to know when a boat is sailing well by the sounds she makes and how she feels. The same thing cannot be done with an engine in the same way but it could be said that experienced engineers could tell how well an engine is doing by the sound it makes. In any case, now she's taking is a general reflection that things are going well.
By SailingQuiz October 2019 Category: Nautical Saying
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Definition of the nautical phrase "Now your talking".