Insulating around mudsills...

Our house is 150yo stickframe/clapboard on a fieldstone foundation. In the basement, I notice that there is some cold leakage around the mudsill (i.e., about 10 inch space between the top of the stone foundation and the bottom of the floorbords)
I have been filling in cracks with a combination of hydraulic cement and/or caulk.
But I was wondering whether it would additionally benefit to staple some narrow insulation bats along the mudsill. Is this likely to be helpful? If so, can I use regular fiberglass bats? With or without vapor barrier?
Thanks
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I'd use paper-backed, because I don't like exposed fiberglass. The fact that it's a vapor barrier is more or less moot, since you'll have exposed edges.
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