William Sydney Porter, better known by his pen name O. Henry, was released from prison in Columbus, Ohio, after completing a three-year sentence for embezzlement. He had been convicted in 1898 after being found guilty of stealing from the bank where he worked as a teller in Austin, Texas. Porter's actions were partly motivated by his precarious financial situation and the difficulties of supporting his family. While in prison, he adopted the pseudonym O. Henry and began to write short stories, using the time to develop his narrative style that would later captivate readers around the world.

O. Henry’s time in prison served as a turning point that inspired his literary career. Upon his release, he emerged into a rapidly changing society that was increasingly publicizing issues of class and equity. During the early 20th century, American literature was evolving with a focus on realism and rich character development, paving the way for stories that captured the essence of urban life. His subsequent works like "The Gift of the Magi" and "The Ransom of Red Chief" reflect these themes and are popular for their surprise endings and moral lessons. The unique blend of humor and poignancy in his stories has resonated with generations of readers.

O. Henry's release marked not just a personal redemption from a troubled past but also his emergence as a significant figure in American literature. His narratives often depict the lives of everyday people and highlight the human experience's whimsical and sometimes harsh nature. His prolific output during the years following his release led to a distinguished career that established him as one of the foremost short story writers of his time, influencing countless authors and writers in various genres.