I don't know... does it sound good? Then try it.   I've been using F#7. The Gdim sounds good as a lead-in to the G chords at the start of each section ( e.g. "Dear one...." and "And while.....") They are pretty similar on the banjo, except for the bass string. It's F# for the F#7 and of course G for the Gdim. Thanks again to Greg Stephens for the original chords.

The song is pretty old as mentioned (thanks for the date and author, Steve). I have somewhere an acoustic 78 of a man singing it in a semi-classical style (nothing like Mary Ford), which had to be from the very early 20s. (Don't remember the name.) Greg was playing it in a trad jazz setting, and I'm playing it on a 5 string banjo in the stroke style. Maybe a Tejano version next?

Joe