Santa Claus is based on St. Nicholas, a 4th century bishop in what is now Turkey who was persecuted for his Christian beliefs by the emperor Diocletian. That’s what’s in the historical record. The legend takes over from there.
St. Nicholas’s reputation as a gift giver – and our tradition of hanging stockings by the fireplace – comes from a story (there are several variations) in which he helps the three daughters of a poor man. Without a dowry, the trio were doomed to slavery or prostitution. So St. Nick tossed bags of gold down their chimney. Luckily, the girls had hung their stockings to dry by the fire, and the gold landed safely inside them. With their newfound riches, they were able to marry.
(Source: Catholic Encyclopedia and St. Nicholas Center)
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