the thread about "jigger in the bum boat" jogged my memory about this
as it has a similar rhythm. We used to sing this with different alphabet letters beginning the words...

I put the penny in the gum slot
see the gum go rounds
la la la la la la ...


by but the benny in the bum bot
bee the bum bo bound.....

(then C.R.S. disease kicks in {can't remember shit}
and the rest of the lyrics are not coming back to me...

oh wait...i think it is coming back to me now....

i get the gum and you get the wrapper
cuz i put the penny in the gum slot..

the tune is simlilar to good night ladies, or merrily we roll along