The Christmas Crib (crèche) dates back to St. Francis of Assisi (Feast October 4). It was in 1293 that the first crèche was celebrated in the woods of Greccio near Assisi, on Christmas Eve. There lived in that town a man by the name of John (Messier Giovanni Velitta), a very holy man who stood in high esteem. Blessed Francis loved with him a special affection because he despised the nobility of the flesh and strove after the nobility of the soul.
Blessed Francis called upon John about two weeks before Christmas and said to him, “If you desire that we should celebrate this year’s Christmas together at Greccio, go quickly and prepare what I tell you; for I want to enact the memory of the Infant who was born at Bethlehem and how He was bedded in the manger on hay between a donkey and an ox. I want to see all of this with my own eyes.” The good and faithful man departed quickly and prepared everything that the Saint had told him. The Friars who had come from many communities, gathered around St. Francis as did the men and women of the neighborhood. They bought candles and torches to brighten the night. St. Francis arrived and saw that everything had been prepared. The crib was ready, hay was brought, the ox and the donkey were led to the spot. Greccio became a new Bethlehem. The crowds gathered and rejoiced in the celebration. Solemn Mass was sung.
St. Francis’ idea of bringing Bethlehem into one’s own town spread quickly all over the Christian world, and soon there were Christmas cribs in churches and homes.
Source: http://www.catholicdoors.com/misc/christmascrib.htm Pic: http://www.flickr.com/photos/ak_win/