Yes, I have seen that at NASCAR races, where they use Methanol as fuel. Or is it Indycar... anyway. When they spilled Methanol during the pitstop and it ignites, you first see nothing. Then everybody starts jumping around like mad, and then the advertising banners start to melt and burn, at which point there are visible flames and smoke. They used to extinguish the fire with water, which dilutes the alcohol. But at a very early stage of course, and its only a few litres, not millions.

Banjos... are they not build like a drum? With a metal ring that has a skin stretched over it? Other than that its pretty similar to a guitar, I guess. That linen is used for that I have not heard before.

Yes, the barrel makers are seeing a boom in business now, I'm sure. The booze company has to get their stock back up, to avoid a gap in availability after the given maturing period. Well there will be some gap already, but they will try to keep it as short as possible.
Well, may be the barrel makers can ramp up their production somewhat, but not indefinatly. For one, not everybody can simply start making barrels, its quiet a art as you have seen. And also, they wont invest too much money in expanding their workshops, since its only a temporary boom. But the price for wooden barrels might shoot up quiet a bit for a while... :)