Emily Spivack recounts it:
The most popular legend about why stockings are hung at Christmas goes something like this: A recently widowed man and father of three girls was having a tough time making ends meet. Even though his daughters were beautiful, he worried that their impoverished status would make it impossible for them to marry. St. Nicholas was wandering through the town where the man lived and heard villagers discussing that family’s plight. He wanted to help but knew the man would refuse any kind of charity directly. Instead, one night, he slid down the chimney of the family’s house and filled the girls’ recently laundered stockings, which happened to be drying by the fire, with gold coins. And then he disappeared.