Balloon Land

Balloon Land, also known as The Pincushion Man, is a 1935 animated short film produced by Ub Iwerks as part of the ComiColor Cartoons series. The cartoon is about a place called Balloon Land, whose residents (including caricatures of popular entertainment figures such as Laurel and Hardy and Charlie Chaplin) are made entirely out of balloons. The villain in the cartoon is the Pincushion Man, a character who walks around Balloon Land popping the inhabitants with pins.
Plot.
The cartoon starts with balloon people who make two balloon kids, a boy and a girl. The kids walk into a balloon forest. A tree scares them. We then see the Pincushion Man popping balloon rocks and trees. The two kids see the Pincushion Man and escape to sound the alarm. Balloon people run around and the kids run to the mayor's office, who says "HOLY SMOKES!".
Balloon soldiers are made and try their best, but the villain pops some of them. He then pops a balloon caterpillar before the soldiers defeat him with balls of gum, rolling him off a precipice and sending him falling to his death. With the Pincushion Man gone, the two celebrate.