Frederick G. Melcher, chairman of the Children's Book Week Committee, proposed a medal to be awarded to the author of a distinguished book for children published during the preceding year. He proposed that it be called the "John Newbery Medal".
"The Newbery Medal is awarded annually by the American Library Association for the most distinguished American children's book published the previous year. On June 22, 1921, Frederic G. Melcher proposed the award to the American Library Association meeting of the Children's Librarians' Section and suggested that it be named for the eighteenth-century English bookseller John Newbery.The idea was enthusiastically accepted by the children's librarians, and Melcher's official proposal was approved by the ALA Executive Board in 1922. In Melcher's formal agreement with the board, the purpose of the Newbery Medal was stated as follows: "To encourage original creative work in the field of books for children. To emphasize to the public that contributions to the literature for children deserve similar recognition to poetry, plays, or novels. To give those librarians, who make it their life work to serve children's reading interests, an opportunity to encourage good writing in this field." Read more from ALA's Awards and Grants Database
See the list of winners on ALSC's site from 1922- present.