I think what you have there is a very nice mohair Teddy bear. It is very similar to my grandmothers. My grandmother was born in 1906 and it belonged to her as a little girl, I think yours would fit into about the same time period, early 1900's. (Someone with expertise on this please confirm/deny for me, thanks!)
Teddy bears became popular after President Teddy Roosevelt, who was infamous for his sport hunting, ordered the mercy shooting of a wounded bear cub. "Teddy bears" became an instant hit and still "bear" his name.
Your Teddy is WONDERFUL!! Love it!