Merton Abbey and the Social Democratic Federation: 1881–1884
In summer 1881, Morris took out a lease on the seven-acre former silk weaving factory, the Merton Abbey Works, next to the River Wandle on the High Street at Merton, Southwest London (not to be confused with the adjacent Merton Abbey Mills, home of the Liberty Print Works.) After he moved his workshops to the site, the premises were used for weaving, dyeing, and creating stained glass; within three years, 100 craftsmen were employed there. Working conditions at the Abbey were better than at most Victorian factories. However, despite Morris's ideals, there was little opportunity for the workers to display their own individual creativity. Morris had initiated a system of profit sharing among the Firm's upper clerks, however this did not include the majority of workers, who were instead employed on a piecework basis. Morris was aware that, in retaining the division between employer and employed, the company failed to live up to his own egalitarian ideals, but he defended this, asserting that it was impossible to run a socialist company within a competitive capitalist economy. The Firm itself was expanding, opening up a store in Manchester in 1883 and holding a stand at that year's Foreign Fair in Boston.
Janey's relationship with Rossetti had continued through a correspondence and occasional visits, although she found him extremely paranoid and was upset by his addiction to chloral. She last saw him in 1881, and he died in April the following year. Morris described his mixed feelings toward his deceased friend by stating that he had "some of the very greatest qualities of genius, most of them indeed; what a great man he would have been but for the arrogant misanthropy which marred his work, and killed him before his time". In August 1883, Janey was introduced to the poet Wilfrid Scawen Blunt, with whom she embarked on a second affair, which Morris might have been aware of.
In January 1881, Morris was involved in the establishment of the Radical Union, an amalgam of radical working-class groups which hoped to rival the Liberals, and became a member of its executive committee. However, he soon rejected liberal radicalism completely and moved toward socialism. In this period, British socialism was a small, fledgling and vaguely defined movement, with only a few hundred adherents. Britain's first socialist party, the Democratic Federation (DF), had been founded in 1881 by Henry Hyndman, an adherent of the socio-political ideology of Marxism, with Morris joining the DF in January 1883. Morris began to read voraciously on the subject of socialism, including Henry George's Progress and Poverty, Alfred Russel Wallace's Land Nationalisation, and Karl Marx's Das Kapital, although admitted that Marx's economic analysis of capitalism gave him "agonies of confusion on the brain". Instead he preferred the writings of William Cobbett and Sergius Stepniak, although he also read the critique of socialism produced by John Stuart Mill.
In May 1883, Morris was appointed to the DF's executive committee, and was soon elected to the position of treasurer. Devoting himself to the socialist cause, he regularly lectured at meetings across Britain, hoping to gain more converts, although was regularly criticised for doing so by the mainstream press. In November 1883 he was invited to speak at University College, Oxford, on the subject of "Democracy and Art" and there began espousing socialism; this shocked and embarrassed many members of staff, earning national press coverage. With other DF members, he travelled to Blackburn, Lancashire in February 1884 amid the great cotton strike, where he lectured on socialism to the strikers. The following month he marched in a central London demonstration commemorating the first anniversary of Marx's death and the thirteenth anniversary of the Paris Commune.
Morris aided the DF using his artistic and literary talents; he designed the group's membership card, and helped author their manifesto, Socialism Made Plain, in which they demanded improved housing for workers, free compulsory education for all children, free school meals, an eight-hour working day, the abolition of national debt, nationalisation of land, banks, and railways, and the organisation of agriculture and industry under state control and co-operative principles. Some of his DF comrades found it difficult to reconcile his socialist values with his position as proprietor of the Firm, although he was widely admired as a man of integrity. The DF began publishing a weekly newspaper, Justice, which soon faced financial losses that Morris covered. Morris also regularly contributed articles to the newspaper, in doing so befriending another contributor, George Bernard Shaw.
His socialist activism monopolised his time, forcing him to abandon a translation of the Persian Shahnameh. It also led to him seeing far less of Burne-Jones, with whom he had strong political differences; although once a republican, Burne-Jones had become increasingly conservative, and felt that the DF were exploiting Morris for his talents and influence. While Morris devoted much time to trying to convert his friends to the cause, of Morris's circle of artistic comrades, only Webb and Faulkner fully embraced socialism, while Swinburne expressed his sympathy with it.
In 1884, the DF renamed itself the Social Democratic Federation (SDF) and underwent an internal reorganisation. However, the group was facing an internal schism between those (such as Hyndman), who argued for a parliamentary path toward socialism, and those (like Morris) who deemed the Houses of Parliament intrinsically corrupt and capitalist. Personal issues between Morris and Hyndman were exacerbated by their attitude to British foreign policy; Morris was staunchly anti-imperialist while Hyndman expressed patriotic sentiment encouraging some foreign intervention. The division between the two groups developed into open conflict, with the majority of members sharing Morris's position. In December 1884 Morris and his supporters – most notably Ernest Belfort Bax and Edward Aveling – left the SDF; the first major schism of the British socialist movement.