Ay, it's a haunting text, this.

I disagree with Sorcha's interpretation, but I'm only speaking from my ingnorance.

To me it seems that speaker in the song is a woman who is rejecting the attentions of men, for they, in the end are all scarecrows, young and old alike -- they would all lay her down, but they are all bags of bones.

The scary part to me, is the twelve jolly dons all "dressed out in the blue and gold.

Blue and gold is the color of the Swedish Crown.

In the 16th. century Sweden took the southern tip of what is now Sweden (Skaane) from the Danes.

There was a resistence among the pepole living there to being under the Swedish king.

The resistance was beaten down over a generation and became quite brutal.

The soldiers in 'blue and gold' would execute the "snap-hane" they captured by impaling them upon a long spike stuck in the ground -- the spike went up along the spine and they were left to die.

The enigma is in the twist in the last chorus -- for now they may lay her down -- for they are only bags of bones, but is it acceptance, or will they kill her also?

But, it may have something to do with fertility rites, as Sorcha suggested.

rgrds CrzyBrd