IT’S A WONDERFUL LIFE (1946): The Making Of A Xmas Classic

Introduction

It’s a Wonderful Life (1946) is one of the most beloved and enduring films in American cinema history. Directed and produced by Frank Capra and starring James Stewart, the film tells the poignant story of George Bailey, an everyman whose life seems small until he sees what the world is like without him. Despite the film’s humble beginnings and initial struggles, it has since become synonymous with warmth, family, and the holiday season. 

At the time of its release, It’s a Wonderful Life received mixed reviews. It also performed modestly at the box office. The film was nominated for five Academy Awards but won none. However, its reputation grew gradually in the decades that followed, particularly after it entered the public domain in the 1970s. It has since become a regular fixture on television and is now widely regarded as one of the most significant films of the postwar American era. Cinema Scholars presents a comprehensive look at how this classic came to life.

Beginnings

The origins of It’s a Wonderful Life lie in The Greatest Gift, a short story written by Philip Van Doren Stern in 1939. After failing to sell the story to a magazine, Stern privately printed several hundred copies and mailed them to friends and family as Christmas gifts in 1943. One copy reached both Cary Grant and RKO producer David Hempstead, who each saw its potential. The film rights were secured in 1944 as a possible vehicle for Grant.

RKO struggled to develop the material into a workable screenplay. Several writers, including Dalton Trumbo, Marc Connelly, and Clifford Odets, worked on the project before it was finally shelved. Still, RKO Head of Production Charles Koerner suggested that Frank Capra read Stern’s short story. He felt it might be a good fit for Capra’s newly formed production company, Liberty Films, which had a nine-picture deal with RKO. Capra quickly signed on and began to merge the three previous screenplays into his own vision.

Frances Goodrich, Albert Hackett, Jo Swerling, Michael Wilson, and Dorothy Parker (along with Capra himself) were all brought in to work on the numerous revisions to the script. By all accounts, the writing process was a difficult one. There were arguments and disputes arising over who would get credit for the finished screenplay. Hackett would later state:

“We were getting near the end, and word came that Capra wanted to know how soon we’d be finished. So my wife said, ‘We’re finished right now.’ We quickly wrote out the last scene, and we never saw him again after that. He’s a very arrogant son of a bitch”

Casting

James Stewart was cast as George Bailey, marking his first screen role after returning from active military service in World War II. Capra viewed Stewart as uniquely suited to the role. This was because of the actor’s wartime experiences as a combat pilot and the psychological strain Stewart endured flying numerous bombing missions over Germany. He was now able to channel a deep inner turmoil that was not evident in his films before World War II.

Stewart, however, was not the first actor up for the part of George Bailey. During the film’s early development at RKO, Cary Grant was seriously considered for the part. Henry Fonda, Stewart’s best friend and a fellow returning World War II veteran, was also in contention. Fonda was ultimately cast in John Ford’s My Darling Clementine (1946). 

Donna Reed was cast as Mary, George’s wife, after several other actors were considered for the role. Olivia de Havilland, Martha Scott, Ann Dvorak, and Ginger Rogers all turned down the role for various reasons. Jean Arthur, a frequent Capra collaborator, was offered the part, though she declined due to health issues and uncertainty about returning to film work.

Mr. Potter, the grinch-like land baron and main antagonist of the film, had been offered to a wide array of actors. Edward Arnold, Charles Bickford, Edgar Buchanan, Louis Calhern, Raymond Massey, Thomas Mitchell, and Vincent Price had all been considered for the role. The studio finally settled on Lionel Barrymore, who was perfect for the part as he had famously portrayed Ebenezer Scrooge in radio dramatizations of A Christmas Carol around the time of casting.

Filming

Principal photography began in April 1946 at RKO Radio Pictures Studios in Culver City. One of the film’s most ambitious elements was the construction of Bedford Falls, a fully realized town built on the RKO movie ranch in Encino. The set covered nearly four acres and included a main street approximately 300 yards long, lined with storefronts, sidewalks, bridges, and residential structures. Mature trees were planted, and working streetlights and plumbing were installed.

Although the story is set during winter, filming took place primarily during the spring and summer. To simulate snowfall, the production abandoned the traditional use of painted cornflakes, which created excessive noise during sound recording. Instead, the effects team developed a quieter mixture of gypsum, plaster, and soap flakes. This innovation allowed live dialogue to be recorded during snow scenes and was later adopted throughout the industry.

It has been widely reported that Stewart experienced PTSD from his time in combat during the film’s more intense scenes, particularly those depicting George’s breakdown and contemplation of suicide. Capra encouraged Stewart to draw on genuine emotion rather than conventional performance techniques.

“God, God, dear Father in Heaven. I’m not a praying man, but if you’re up there and you can hear me, show me the way. I’m at the end of my rope. I…show me the way, oh God.”

Stewart delivered those lines perfectly, even breaking down in tears, which was not part of the script. But Capra needed another take and wanted a close-up of Stewart in this now iconic scene. Stewart looked at the director and said:

“Frank, I can’t do that again. Don’t ask me.”

Release and Reception

It’s a Wonderful Life was released in December 1946, with its premiere held at the Globe Theater in New York City. The film was positioned as a major prestige release for Liberty Films, Frank Capra’s independent production company. The film also benefited from substantial studio promotion. At the time, Capra was one of Hollywood’s most respected directors, and James Stewart’s return to the screen after World War II generated significant attention.

Critical response upon release was mixed. While some reviewers praised the performances and the film’s ambition, others found its tone overly sentimental and its structure uneven. The film received five Academy Award nominations: Best Picture, Best Director, Best Actor, Best Film Editing, and Best Sound Recording. However, the film did not win in any category. It was largely overshadowed during awards season by William Wyler’s The Best Years of Our Lives, which addressed postwar adjustment in a more grounded way.

Commercially, It’s a Wonderful Life underperformed. With a production cost of approximately $3.18 million, the film grossed $3.3 million at the box office. This fell short of profitability once distribution and marketing expenses had been factored in. The financial disappointment contributed to the eventual decline of Liberty Films, which was absorbed by Paramount Pictures shortly after the film’s release.

Legacy

The reputation of It’s a Wonderful Life has continued to grow throughout the late twentieth and into the twenty-first century. This started in 1976 when the film became a television staple during the Christmas season. By the 1980s, the film had been firmly established as a holiday tradition in the United States with annual television broadcasts. Its themes of civic responsibility, economic ethics, and personal worth were reassessed within the context of postwar American cinema. The result was a critical reevaluation of Capra’s now classic film.

In 1990, the Library of Congress selected It’s a Wonderful Life for inclusion in the National Film Registry, citing its cultural, historical, and aesthetic significance. The American Film Institute has repeatedly acknowledged the film, ranking it among the most inspiring American movies and listing George Bailey as one of the greatest screen heroes. These distinctions helped solidify its status within the classical Hollywood canon. Decades later, in 1987, Jimmy Stewart would state for Guideposts Magazine:

“Those who loved it loved it a lot, and they told others. They wouldn’t let it die any more than the angel Clarence would let George Bailey die… Today, after some 40 years, I’ve heard the film called “an American cultural phenomenon.” Well, maybe so, but it seems to me there is nothing phenomenal about the movie itself. It’s simply about an ordinary man who discovers that living each ordinary day honorably, with faith in God and a selfless concern for others, can make for a truly wonderful life”

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