Webster's 1847 edition, which I had the pleasure to see a while back, gave the etymology as private rule.
Formal government is uneccessary.
That is, we rule ourselves . Each and every one of us, as adults, are capable of doing so. This is, after all, what we mean by adult. Without direction or laws from any outside source, except our Creator. All governments and people in entrenched positions of power fear this word and concept and treat it with the greatest of hate and loathing, for it would, you see, put them directly out of business.