Fanny Brice ("Funny Girl") had a big hit in 1921 called, "I'm an Indian". The song was packed with as many Lower East Side Yiddishisms as possible, so we hear, "Oy, I'm an Indian. Whoop, I'm an Indian squaw." Doesn't make the short any more politically correct, but at least we know what the reference was to.
We already had the song title credited in the Production Notes on the Filmography page, but I just added your comment, above, in the Trivia section as well, since you've provided more info about the song.
Thanks, Freddie!