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When the Pilgrims came to Plymouth they were inadequately prepared for the winters there. The indians lent them blankets (wool or skin - don't know) to use. Once the Pilgrims had established themselves and were weaving, hunting, and making their own blankets, the Indians took their blankets back as they were no longer needed. The pilgrims, who had considered the blankets a gift, were offended. Therefore, an Indian giver is a derogatory term applied to someone who has given a gift and wants it back.
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