Having reached Grecio, he found all things prepared for the celebration of the festival by his friend Velita. They had prepared a crib in the wood, in which was represented the Nativity of our Saviour; they had placed straw there, and, during Christmas-night, also took there an ox and an ass. Many Friars Minor had arrived at the wood from the neighboring convents, and the people of the environs came in crowds to the ceremony. The wood was lit up by numerous torches, and resounded melodiously from the sound of a thousand voices which sang the praises of God with untiring zeal. Francis, full of devotion, and with his eyes bathed in tears of holy joy, knelt before the manger, above which an altar had been placed, where mass was celebrated at midnight; he acted as deacon, and after having sung the Gospel, he preached on the birth of the newborn King, became poor.

Velita, who had prepared the ceremonial, assured them that he had seen a most beautiful child in the manger, who was asleep, and whom Francis tenderly embraced in order to awaken it. There is so much the more reason for giving credit to this marvel, says St. Bonaventure, since he who relates it, having been an eye-witness thereof, was a very holy man, and since it was confirmed by many miracles; for the straw on which the child appeared to be sleeping, had the virtue of curing various maladies amongst cattle; and, what is still more wonderful, those who came to visit the spot, however tepid and indevout they may have been, were inflamed with the love of God. After the death of the Saint, a chapel was erected on the spot, and the altar was placed at the manger, in order that the flesh of the man-Cod immolated on the cross, might be eaten on the spot on which He had chosen to appear as a sleeping infant.

After the ceremony, Francis retired to the convent of Grecio, where some of the provincial ministers had collected, who had come thither to communicate to him the affairs of their respective provinces. The refectory had been set out in a better style than usual, with napkins and glasses, not only on account of the solemnity of the day, but to show respect to the guests. Francis was displeased at this, and, during dinner, he went to the door of the convent, and took the hat and staff of a pilgrim who was soliciting alms, and then, in this garb, came to the refectory to beg as a poor pilgrim. The superior, who knew him by his voice, said to him, smiling: "Brother pilgrim, there are here very many religious, who stand in great need of what has been bestowed upon them out of charity; however, come in, and they will give you what they can." Francis came in and sat himself on the ground, where he ate very contentedly some scraps of bread and other things which they gave him on a platter, without choosing to have anything else.

Francis remained some time at Grecio, where, one night, when he intended to lay himself down to sleep, he felt a severe headache, and a shivering over his whole body, which quite impeded his resting. Thinking that this might be caused by a feather pillow which his friend Velita had compelled him to accept, in consequence of his infirmities, he called his companion, who was near his cell, and said: "Take away this pillow: I believe the devil is in it." His companion, who took it away, found it extremely heavy, and he had hardly left the cell, when he found himself motionless and dumb. The Father, not doubting of the malignity of the devil, ordered the brother, under obedience, to come back directly; the wicked spirit having immediately left him, he came back and related the state in which he had found himself. The Saint, confirmed by this in the idea with which he had been impressed, that what he had suffered had been brought on by his enemy, said:—"It is true that yesterday, when reciting Compline, I perceived that the devil was approaching, and I prepared to resist him. He is full of malice and artfulness; as he could not sully a soul which God protects by His grace, he endeavored to injure the body, and to prevent the necessary aid being afforded to it; desiring to induce it to commit some fault, at least of impatience, and prevent its having recourse to prayer." The holy man was delivered from his sufferings, and got the rest he could not obtain, when his head was laid upon a feather pillow. To what a height of perfection did not God propose to raise this His faithful Servant? He did not even allow him to have a small relief from his sufferings. He is a holy God, jealous of the sanctity of souls, who desires to have them purified by all sorts of sacrifices; but, then, His rewards are great.

Whilst Francis was at Grecio and in its environs, Peter of Catania, his first vicar-general, died in the Convent of St. Mary of the Angels, on the 2d day of March, 1224. As soon as he was in the tomb, God bore witness to his merit by many miracles. The people crowded to his grave, and left valuable offerings, which greatly disturbed the quiet of the religious, and caused them much uneasiness on account of their strict poverty. Francis, having been informed of it, went to the tomb, and, moved by holy zeal, he addressed the dead man in a commanding tone, with which God alone could have inspired him: "Brother Peter, whilst you were living, you always obeyed me punctually: I command you to obey me similarly now. Those who come to your grave are very troublesome to us. Our poverty is offended, and our quiet infringed on, so that our discipline becomes relaxed; thus, I command you, by your vow of obedience, to refrain from performing any more miracles." His order was obeyed. From that moment no more miracles were performed at the tomb of Brother Peter.

An ancient manuscript chronicle which is preserved in the Vatican, mentions that Francis, having directed the body of Brother Peter to be removed sometime afterwards, it was found that it was turned and kneeling, the head bowed down, and in the posture of one who obeys a command given him. To mark the value of obedience and the respect due to it, God was pleased to permit a dead person to obey the orders of a superior, as if he had been living.

A similar prohibition from performing miracles after death, is recorded in the life of St. Bernard. Gosvin, Abbot of Citeaux, who was at his funeral with many other abbots of his order, seeing the commotion caused by the numerous miracles which were worked there, and fearing this would become prejudicial to regular discipline, approached respectfully to the coffin, and forbade the saint from performing any more miracles, in virtue of his obedience. And, in fact, from that time, there were no more performed at that shrine publicly, although God performed others privately by his invocation. The author adds, that St. Benedict requires in his rule, an obedience without reserve, according to the example of Jesus Christ, who was obedient unto death, and that the soul of St. Bernard rendered itself obedient even after death to a mortal man.

Clare, and her daughters of the Monastery of St. Damian, now asked Francis to give them a written rule, and a form of life similar to that of the Friars Minor, in order that, in his absence and after his death, they and those who should succeed them, might live up to it. These Religious of St. Damian, did not wish to receive the rule of St. Benedict, nor the constitutions prepared by Cardinal Ugolino, which the other monasteries, established on the plan of St. Damian, had willingly accepted, and which were of great severity: these nuns desired to have a rule which should be of even greater rigor.

The holy Patriarch consulted the same cardinal on this subject, he being the protector of both Orders; and they jointly composed a rule in twelve chapters, which was similar in all respects to that of the Friars Minor, with modifications and usages proper for females. If anything made Francis hesitate, the cardinal gave his opinion either to modify certain parts, or to take precautions on others. He also used some articles from the constitutions which had before been drawn up. While he was writing, he could not help shedding tears, in reflecting that young females were willing to practise austerities of such a nature.

St. Clare says in her will, addressing herself to the sisters: "Our blessed Father, St. Francis, has written for us a form of life, principally that we may ever persevere in the practice of holy poverty, to which he has exhorted us, not only by his word and example, but by many writings which he has left us. Pope Innocent IV expressly declares in the bull which he issued at the earnest entreaty of St. Clare, three days before her death, that the rule which he confirms was given them by St. Francis. All is his, except some very trifling things, in no way essential, which seem to have been added to it by Cardinal Ugolino, by St. Clare, and by the Pope.