I love that Uncle Sam is shaking Santa's hand. I believe he's thanking him for making the ornaments in the USA instead of Herr Schicklgruber's fahzerland. The $1.20 price tag seems a little high for the time.
Interestingly, it looks like you could buy the ornaments individually based on the "10 ea" note. "1 Dozen" total, so no discount for buying in bulk.
Max Echardt began importing ornaments from Germany in 1907. In 1937, he created the Shiny Brite line and began producing them in America in anticipation of what he knew was a coming war. Although the company no longer exists, some Shiny Brite ornaments are reproduced by Christopher Radko.