Have a look at the `snip%` and `pasteboard%` classes: you can represent each glyph using a `snip%` and the pasteboard will handle the moving it with the mouse. You can derive the `snip%` and `pasteboard%` objects to add new functionality -- this is easier than implementing a mouse move operation using the `canvas%` `on-event` method.
While not exactly what you need, I wrote a blog post about using `snip%` objects, and in the first example, the chess pieces themselves are actually Unicode Glyphs, so you could easily modify it to have different Glyphs/Letters that can be moved around in a canvas: