Slowly the businesses in Chapin were starting to experience hard times nearing the 1930s. On Thursday, October 15, 1931, the Bank of Chapin did not open, and like other banks around the world, the bank would not allow customers to withdraw their money. Anybody who had money saved in the bank lost that money due to the crash of the stock market, later known as the start of the Great Depression. Another disaster to hit Chapin was the building of the dam on the Saluda River that would result in the building of a lake. This lake would take over most of the Chapin families’ farms and homesteads. The building of the dam was started in 1927.