The Dead learnt the version they performed from the recording by Joseph Spence and the Pindar Family. The origins of the song go back rather further, though, as is explained in the sleeve notes from Waterson: Carthy [TSCD 475, 1994]:
"In the 1960s, the Incredible String Band renamed a song called 'I Bid You Goodnight' which they learned from Jody Stecher's recordings of the great Bahamian guitarist Joseph Spence and his family, the Pindar family, and the song became, for some folkies, one of those great standards. A year or two ago, John Howson visited Staithes to record the Fisherman's Choir, and was accompanied by Maggie Hunt who, at the same time, was interviewing the individuals involved. During conversations, Mr Willie Wright sung a snatch of the Sankey hymn 'Sleep On Beloved' which he described as a lowering down song at funerals, and which was clearly the same song as 'I Bid You Goodnight' but in an earlier form, and when Norma [Waterson] heard it she went to see Willie, who kindly provided her with the other verses. When we sang the song to Jody Stecher, he was enormously pleased, not least because its function as a funeral song in the Bahamian fishing community was identical to that in its North Yorkshire counterpart."
[Interestingly, Jody Stecher plays and sings on the Garcia/Grisman album "Not For Kids Only."]
This hymn features in a number of hymnals, normally under the title "The Christian's Good Night." See for example the version in the Cyber Hymnal
The lyrics the Dead sing are:
Chorus
Lay down my dear brothers, lay down and take your rest
Won't you lay your head upon your saviour's breast
I love you, oh but Jesus loves you the best
And I bid you goodnight, goodnight, goodnight
And I bid you goodnight, goodnight, goodnightTell "A" for the ark, that wonderful boat (goodnight, goodnight)
Sing "B" for the beast at the ending of the wood (goodnight, goodnight)
Well it ate all the children that would not be good (goodnight, goodnight)
I remember right well, I remember right well (goodnight, goodnight)
Walking in Jerusalem just like John (goodnight, goodnight)
I go walking in the valley of the shadow of death (goodnight, goodnight)[chorus]
additional lyrics
I never would ride, I never would ride (goodnight, goodnight)
But his rod and his staff they comfort me (goodnight, goodnight)
The version 'Sleep On Beloved' as learnt by Norma Waterson is:
Sleep on beloved, sleep and take thy rest
Lay down thy head upon thy saviour's breast
We love thee well, but Jesus loves thee best
Goodnight, goodnight, goodnightUntil the shadows from this earth are cast
Until he gathers in his sheep at last
Until the twilight gloom is over passed
Goodnight, goodnight, goodnightUntil made beatiful by love divine
Thou in the likeness of thy Lord shall shine
And he will bring that golden crown of thine
Goodnight, goodnight, goodnightUntil we meet again before the throne
Clothed in the spotless robes he gives his own
Until we know as we are known
Goodnight, goodnight, goodnight
The lyrics on the Joseph Spence version include more verses than the Dead sing - and has a lot of lyrics in common with Bye And Bye sung by Bob Weir with Kingfish:
Lay down my dear brother, lay down and take your rest
Won't you lay your head now upon your Saviour's breast
I love you, oh but Jesus love you the best
Lord I bid you goodnight, Lord, goodnight, Lord, goodnight
Lord I bid you goodnight, Lord, goodnight, goodnightLay down brother Spence, won't you lay and take your rest
Won't you lay your head now upon your Saviour's breast
I love you, oh but Jesus love you the best
Lord I bid you goodnight, Lord, goodnight, goodnightOne of these mornings bright early and soon (goodnight, Lord, goodnight)
Not a [creepy] not a spirit gonna shout me on (goodnight, Lord, goodnight)
Lord I go walking in the valley of the shadow of death (goodnight, Lord, goodnight)
His rod and staff shall comfort me (goodnight, Lord, goodnight)
Jesus and Moses shall follow me on (goodnight, Lord, goodnight)
John the wine said I saw the sign (goodnight, Lord, goodnight)
John said a number of sign (goodnight, Lord, goodnight)
Tell "A" for the ark, that wonderful boat (goodnight, Lord, goodnight)
She building on the land, getting water to float (goodnight, Lord, goodnight)
Now "B" for the beast at the ending of the wood (goodnight, Lord, goodnight)
It ate all the children that would not be good (goodnight, Lord, goodnight)
I remember right well, I remember right well (goodnight, Lord, goodnight)
I went a-walking in Jerusalem just like John (goodnight, Lord, goodnight)Lay down brother Pindar, lay down and take your rest
Won't you lay your head now upon your Saviour's breast
I love you, oh but Jesus love you the best
Lord I bid you goodnight, Lord, goodnight, goodnight