Holy shit! I have never met anyone that knows that rumor! ahahahaha oh wow man
Ok so the whole story:
The anarchists cookbook. The guys in that circle were talking to some other guys and the book was the sort of thing you'd make your own copies of and some of them knew printing press people. So a couple of guys thought it would be funny to start a rumor through the book by including their own section with a made up drug.
Bananene
They wrote that if you dried banana skins, scraped the residue off the inside, you could smoke the powder and get very high due to a chemical compound called "bananene."
Of course it's fake. But the inclusion in the anarchists cookbook for a while helped it along.
So sittin round to smoke the banana skins is reference to that.