Tom Smith, an English confectioner, invented the Christmas cracker in 1847, drawing his inspiration from packaged French sweets, or bon-bons.  The original crackers were much like those of today, but the name was different.  Smith called his crackers by the French word for: 

The snap of the cracker reminded Smith of a cracking whip, and so of the famed Cossack mounted soldiers of Russia.  His original crackers, or cosaques, contained a sweet and a "love motto".  The company he founded exists to this day, and supplies Christmas crackers to the British royal family.