A mailman (Astaire) narrates the story of Santa Claus and why he answers children's letters at Christmas time. A long ago an orphan named Claus is found and taken to the office of the Burgermeister-Meisterburger (Frees). The infant is sent to an orphanage but the winter wind intervenes and carries the bundled boy to the woods where the creatures of the forest take him to the Kringle family home in Rainbow River Valley. They are the royal toy makers and elves. Tanta Kringle gives him the name Kris and he is tutored in the ways of toy making. The Kringles make toys but let them pile up, as they cannot get them past the Winter Warlock (Wynn) to the children in Sombertown. Kris (Rooney) vows to one day deliver the toys when he is grown. Years later he is given a brilliant red suit. On his way to town he meets Topper a lost penguin. He takes the toys to town barely getting past the Winter Warlock but a law has been passed banning the toys by the Burgermeister. Kris is running afoul of the law but persists when he meets a beautiful young woman named Jessica (Lester) whom he gives a doll to.
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When the guards try to catch Kris he is able to outrun and out leap them. He and Topper are caught by the Winter Warlock but are able to melt his icy heart. Jessica gives Kris letters from all the good boys and girls. They restock with toys but this time the doors to the homes are locked and he must enter through the chimney. He hides them in the stockings hung by the fireplace. The guards capture all the Kringles and the Winter Warlock too. The Warlock gives Jessica magic feed corn and she has 8 reindeer fly in and free the captives. Kris, now a fugitive from the law, grows a beard and changes his name to Claus. He marries Jessica and they all move to the North Pole. The only day of the year he works is moved to Christmas.
The review of this Movie prepared by David Fletcher