This delightful old Christmas decoration was probably a candy container or candy box. It's a cotton padded mica cardboard sled with a cotton batting Santa driver and a hooded snowsuit batting child riding behind. The child, which is pinned to the sled, has a hand painted molded composition face peeking out from the cotton hood. Santa has a molded clay face and faded red batting suit and hat with chenille trim. His boots are black spun cotton and his beard is cotton. One side of the sled is decorated with a sprig of wired fabric holly leaves and a red berry.
It's likely that the Santa was added at a later time and is not original to the sled. I believe the Santa figure was made in Japan and the snowbaby type child and sled may have been made in Germany. I have a scan of a 1919 Marshall Fields catalog that shows a German "candy box" very similar to the sled and child with no Santa.
The candy container is in remarkably good condition for its approximately 100 year age. The clear glitter coating is worn and the white batting has some typical age discoloration. A piece of brown cardboard is glued to the bottom, it looks old but is probably not original and is probably covering up the box opening. There are no tears or major wear. The sled measures 5 inches long by 2-1/4" wide. Height is about 4-1/2 inches to the top of Santa's head.