From The Collaborative International Dictionary of English v.0.48:
Swag \Swag\, v. i. [imp. & p. p. Swagged; p. pr. & vb. n.
Swagging.] [Cf. Icel. sveggja, sveigja to bend, to sway,
Norw. svaga to sway. See Sway.]
1. To hang or move, as something loose and heavy; to sway; to
swing. [Prov. Eng.]
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2. To sink down by its weight; to sag. --Sir H. Wotton.
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I swag as a fat person's belly swaggeth as he goeth.
--Palsgrave.
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3. To tramp carrying a swag. [Australia]
[Webster 1913 Suppl.]
From The Collaborative International Dictionary of English v.0.48:
Swag \Swag\, n.
1. A swaying, irregular motion.
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2. A burglar's or thief's booty; boodle. [Cant or Slang]
--Charles Reade.
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3. [Australia]
(a) A tramping bushman's luggage, rolled up either in
canvas or in a blanket so as to form a long bundle,
and carried on the back or over the shoulder; --
called also a bluey, or a drum.
(b) Any bundle of luggage similarly rolled up; hence,
luggage in general.
He tramped for years till the swag he bore
seemed part of himself. --Lawson.
[Webster 1913 Suppl.]