Some translations of the lyrics:
"Dogies" (Pronounced Doe-gies), is a Western Cowboy Slang term for "Cattle." "As the dogies retire" translates to: "As the cattle settle down for the night."
"Good night, you Moonlight Ladies" - This line is often misinterpreted, as many listeners are fooled into believing that the moonlight Ladies are prostitutes. The "Moonlight Ladies" are actually the spirits of the moon, which come out of the sky and shine their lights as the evening darkness falls.
"Rockabye, Sweet Baby James" - This line is loosely based on the nursery rhyme, "Rockabye Baby
." James wanted to make this song sound smooth and calm for his baby nephew, so instead of singing the familiar lullaby "Rockabye Baby," he softly sang, "Rockabye, Sweet Baby James."