Well as of November 2002, surfer Marion Scherer of Florida, USA has offered help saying both that she knows the song and melody. Her version can be by clicking lyrics above. In her email she goes on to say that she learned it from her grandmother who arrived in Canada from Guernsey, in the Channel Islands, when she was seven years old. She always thought that the lullaby was English but wasn't sure if the song was specific to Guernsey or had originated in England or some other part of the Britsih Commonwealth.
Another version supplied by surfer Marion Scherer in November 2002:
Oh Mother how pretty the moon is tonight, it was never so pretty before,
It's two little horns are so sharp and so bright, I hope they don't grow anymore.
If I were up there with you and a friend, I'd sit in the middle and hold on both ends,
What a nice cradle t'would be, t'would be, what a nice cradle t'would be.