Maybe the Smith & Wesson change wass just a mistake or she didn't think other folks would understand he pawned a typewriter. Doesn't make sense if the subject's still playing solitaire with a pearl-handled deck.

Think I'd do the chorus as:
(F)Carmelita, hold me tighter, I
(C)think I'm sinking (F)down, and I'm
(C)all strung out on hero(G)in, on the
(G7)outskirts of (C)town

Of course it's been a while since I heard it and I may have a different idea of the tune.