That may be the source someone was thinking of, but the lyric is also found, in almost those exact words, in Henry W. Le Messurier's Newfoundland song "The Ryans and the Pittmans," now universally known as "We'll Rant and We'll Roar," from about 1880.

The tune is, as in all the other cases, "Spanish Ladies."

The strong suspicion is that the verse

And we'll sing and we'll dance now
Like true born young sailormen
We'll sing and we'll dance on deck and below
Until we sight Wasco? beyond ???
And straight up the channel to Wasco? we'll go.

is from "We'll Rant and We'll Roar," because the town name is "Toslow" on Placentia Bay.