Or the blankets these people are wearing could be Navajo blankets. In the 1700's the Navajo tribe of the American Southwest wove sheep's wool into classic wearing blankets that became coveted trade items.
However, when the Indian Wars ended in 1890 and the reservation system began, federally licensed Indian trading posts were established and began selling machine-made blankets to the Indians. The Navajo ceased making wearing blankets and began to weave the Navajo rug, which was a much heavier textile than the traditional Navajo wearing blanket. These rugs were designed specifically for the floors of non-Indian homes. The result was "Indians selling rugs to whites and whites selling Indian blankets to Native Americans - a practice that continues to this day. For over a hundred and ten years Indian blankets has been made for Indians, not by them." (Barry Friedman)
Mary Dwyer McAboy (1876 - 1961) of Missoula, Montana also knew how to dress a doll, that is, an American Indian doll. Each one was wrapped in an Indian-style folded blanket so that it looked like they had folded arms. Her Skookum dolls were first made in 1913 and were produced into the 1960's. The wonderful old Skookum dolls pictured below are some of my favorites from my own collection.