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In the 1990s, there was a brand of collectible village called Liberty Falls Americana, made by a company called International Resource Services and sold in department stores. The figures are stamped “IRS” on the bottom. The product line consisted of porcelain buildings that are close to HO scale, but the figures are pretty close to 1:64 S scale. Made-to-be-collectibles tend not to hold their value very well, which means they’re still inexpensive today, and not hard to find on Ebay.
Set in the American West in the late 19th century, the figures are passable on a train layout even if your layout is set in a later era. Women in long, formal dresses won’t look out of place near a church, for example. Perhaps there’s a service or a wedding going on. Men in suits and hats work in that setting as well, and men tended to dress much more formally up to the 1950s than they typically do today, so the male figures in suits and hats wandering around the commercial district are perfectly believable on a traditional American Flyer toy train layout.
Then again, if you want Western figures to complement an American Flyer setup featuring a Casey Jones loco, the Liberty Falls figures are the very best thing you’ll find.
Sometimes the figures come painted and sometimes they’re just stained pewter. If you can score some painted figures, of course, they can go straight to the layout. Painting unpainted figures can be part of the fun too.