The lyrics in the Digital Tradition appear to be an exact transcription of the lyrics I found in the pink (1959-1964) Collected Reprints from Sing Out! book. Here are the background notes:

Folksinger-Folklorist Sam Eskin, who collected this song, writes: "My information on the song is scanty. I collected it from a woman in Colorado some years ago and she heard it from the singing of an English gal. And that is all I know about it." Any other comment would be superfluous.

Well, maybe so, but I'd like to know more, anyhow. I searched for children are laughing in Roud and in the Traditional Ballad Index, but came up with nothing.

-Joe Offer-