This Codebooks is found in Downtown Emporia, inside Hudson's Clothes Shop:

Hudsonsdowntownemporia.jpg


Go downstairs (either jump or take the stairs) and look in the corners for a sink and dripping water, as shown below:

Codebooksinkbioshockinfinite.jpg


The code book here corresponds to a cipher inside Bank of the Prophet.

See here for walkthrough:

Bank of the Prophet Code Book Walkthrough