I think it's from a jump rope rhyme:
I'm a little Dutch girl dressed in blue
These are the things I like to do
Salute to the captain, bow to the queen,
and turn my back on the dirty old witch...
Originally, Hank Ballard and the Midnighters recorded it in 1959 (Hank also wrote it). It was, however, made famous by Chubby Checker's version in 1960.