Hi Myn, its come from President Theodore Roosevelt (Teddy). As the story goes, its based on a political cartoonist who heard the story about the president refusing to shoot an old injured bear on a hunting trip. The picture the cartoonist drew looked very similar to your picture.
That is the short version
Teddy bears are named after a President of the United States
Toy bears were probably popular long before the 20th century but 'teddy' bears got their name from Theodore, or Teddy, Roosevelt, President of the United States of America from 1901 to 1909. Roosevelt was particularly fond of bear-hunting and on one occasion returned from an expedition with a live baby bear. The newspapers picked up the story and for ever afterwards children's toy bears were called Teddy' bears.
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