A slightly different version, in Pankake & Pankake's _Prairie Home Companion Folk Song Book_:

Baby's boat the silver moon
Sailing in the sky
Sailing o'er the sea of sleep
While the clouds float by.

    Sail, baby, sail
    Out upon the sea
    Only don't forget to sail
    Back again to me.

Baby's fishing for a dream
Fishing near and far
Her line a silver moonbeam is
Her bait a silver star.

    Sail, baby, sail...

Words by Alice C. D. Riley, 1899, they say.