Many USGI holsters of WW vintage have this feature.
Mostly done in the field (bored?).
Maybe decoration, maybe spare cordage.
Look at enough vintage holsters and you're bound to see some.
Reminiscent of tassel on uniforms...
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They were NOT done in the field. They were attached to the holsters when issued. It is a tie down and, if unraveled, is plenty long.
It's a tie-down strap. Or thong. Or whatever you want to call it.
Didn't know they were issued that way, but makes perfect horse sense.
These tie downs (or "Thong" as described by the military) were made of elk skin. They were not only issued with the holster by the military they were supplied with the holster by the manufacturer. The Government specifications called for these thongs to be provided as part of the holster.
I see a lot of repro 1917 holsters (for the S&W and the Colt) have a thong of sorts hanging from the muzzle end. What's it for? It's too short to go around the thigh, and anyway, period pics don't show this thong.