It is December 23rd in a small town somewhere - not too long ago. As darkness falls, distant sleigh bells are heard, accompanied by the faint chattering and giggling of many high pitched elfin voices. After a moment, a tall, mysterious figure in a long, dark cloak enters, nods, gives a signal, then departs. Suddenly a group of unusual, energetic little beings dash in, and within moments, these elf-like creatures transform a deserted storefront into a colorful and fully-equipped toyshop.
The next morning the townspeople are amazed at the sudden appearance of a toyshop, and many curiously investigate. A sign over the door identifies the proprietor as "Nicholas S. Claus." His assistant, Nix, has pointed ears and shoes and speaks to the toys as though they were alive. Although Claus and Nix are terribly busy, they do take time to make friends with some of the people of the town. Mr. Tompkins, a minor public official, is a quiet,gentle man, who would love to have a toyshop of his own. When he asks to work in the shop, Claus gladly accepts his help.
Claus also takes time to befriend two young orphans, Michael and Jennifer. Vowing to find a way to ease the sad plight of this brother and sister, he is aided by the arrival of a mysterious spirit, who dances gracefully, but does not speak.
