FWIW, Rick, I think you are correct-- the song was probably written with the step down from "Come" to "dear" [in the first line] being a full step, not a half step -- in which case G to G7 works well. (G to B7 also contains that G note to F note transition.) It sounds a lot better to me when I use a modified G7 -- 323003 -- than when I use the more customary G7 -- 320001.

So I may be "folkifying" the tune slightly by going down only a half step from "Come" to "dear." But if it's sung that way, the transition from G to F# fits.

I'll probably do it the way you indicated -- i.e., G to G7 --when I'm in jams and song circles, since it it easier for some folks to follow that way.

I never cease to be intrigued, though, at how different singers/players can use different chords for the same song -- even when using the same basic style -- and the variations can all sound good.

Genie