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The Populist Party (originally the People's Party) was established in 1891 when the Knights of Labor and Farmers' Alliance joined forces.
Birth of the Populists. Out of the ashes of the Greenback-Labor Party grew the Populist Party. In addition to demanding the free coinage of silver, the Populists called for a host of other reforms. They demanded a graduated income tax, whereby individuals earning a higher income paid a higher percentage in taxes.lthough he came far short of victory, Populist ideas were now being discussed at the national level. When the Panic of 1893 hit the following year, an increased number of unemployed and dispossessed Americans gave momentum to the Populist movement. A great showdown was in place for 1896.