The first illustration of a Christmas cracker appeared in The Illustrated London News in 1847, but there is some argument as to who invented them. Two London sweet makers, Tom Smith, and James Hovell, both claim to have invented the cracker. In 1840s Paris, sweets called “bon-bons” were wrapped in twists of brightly colored paper. Tom Smith (or James Hovell) brought back the idea but added a little slip of paper with a message on it, called “kiss mottoes.” Later, other attractions were added, such as little paper hats, tokens and small toys, plus the “crack.” It is said that Tom (or James) was sitting in front of his Christmas fire where the yule logs were crackling, which gave him the idea of putting a cracker strip inside his bon-bons. The crackers were also made to look like tiny yule logs, as they still do today.
A Brief History Victorian “Cracker”
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Country & Victorian Times 