The term "Teddy" bear is named after one of America's late presidents, Theodore Roosevelt, who held office from 1901 - 1909. One of the true pioneers was Margarete Steiff, a German girl, who at a young age was stricken with Polio. By 1887 Margarete's toys were being sent all over the world. Back in the States, Theodore Roosevelt's daughter was in the midst of her wedding plans. The caterer, was searching everywhere to find a unique and appropriate table decoration. In his journeys he went to New York and one of the first things he had seen was this little bear looking at him through the shop's window. Knowing how the President was a big game hunter he bought a handful of them to decorate the tables with. He had decorated them in various costumes such as fishermen and hunters. This had delighted everyone at the wedding including the President.
At the end of the reception a close friend of the family asked, "Say "Teddy" what species do these bears belong?" Not knowing Roosevelt replied, "you really got me there so I think they must be a new species called Teddy Bears". Now the press being present picked up on this little story and had released it all over the papers, thus the little bear became famous and thousands and thousands were ordered from all over the world.
Credit for parts of this story go to Margaret Hutchings's "Teddy Bears and How to Make Them"