movie about a town with wacky people and there is a parade

When a trio of ex-convicts led by Mattie Appleyard is released from prison, they hope to open a general store using money Mattie has saved during his 40-year sentence. This attempt is met with great resistance from a corrupt prison official and the banker who issued Mattie the check.

A small but growing Texas town, filled with strange and musical characters, celebrates its sesquicentennial and converge on a local parade and talent show.

A live action pageant of mechanical toys, animals, puppets, cars, lead soldiers, and dolls—all set in motion. Toy buildings and photographic or painted images of city streets serve as backdrops. Festive elements from circuses, carnivals, and holiday parades are combined into an exuberant procession set to the music of John Philip Sousa. As the film ends, and the last puppet looks up at the sky, a red balloon drifts upward and the music fades out. 
Edinburgh International Film Festival award winner, 1954.

Life in a small town, sunk in boredom and lack of excitement where dogcatcher is very important person.

A live action pageant of mechanical toys, animals, puppets, cars, lead soldiers, and dolls—all set in motion. Toy buildings and photographic or painted images of city streets serve as backdrops. Festive elements from circuses, carnivals, and holiday parades are combined into an exuberant procession set to the music of John Philip Sousa. As the film ends, and the last puppet looks up at the sky, a red balloon drifts upward and the music fades out. 
Edinburgh International Film Festival award winner, 1954.