The city was not evacuated. There were some reports on local radio stations about the attempted bombings, and there were rumors. ''It was really a situation of disbelief,'' said Frank Newkirk Jr. ''I saw people talking and laughing about it. There was a sense of the unreal about the whole thing.''

There was a bit more reality attached to the situation for Mr. Newkirk. He found two bombs containing a total of 52 sticks of dynamite under the steps to his law office. ''They told me it would have taken the whole building down and sent debris flying blocks away,'' Mr. Newkirk said.

After his discovery, the state legislator moved his family out temporarily. ''If they can put it under my steps, they could throw it through my window,'' he said. Another bomb was discovered near an automobile parts store by a 19-year- old employee, John Miller, who first took cover behind a big tree. He then went to the store and warned those inside to leave. The manager, Joe Shawler, closed immediately, saying, ''I've been through Vietnam and I'm not going up this way.''

By Wednesday Salem had settled down somewhat. Businesses were open. The only signs of the incident were uniformed men checking alleys and asking questions.

Still, a paper bag sitting in an alley no longer looks only like trash to most people here. Rather, it is a signal to shoo children away and rush to call the police. And at midday Wednesday there was a minor flurry of panic when a crank call sent investigators scrambling on a fruitless search.

''You want to believe it's all a hoax, a joke, but they all said it's serious,'' Mrs. Curry said, referring to the investigators. ''I think we're all more scared now than when it first happened.''

Some residents say they believe that even when the anxiety subsides, the city will not be the same. ''Who's going to move here?'' Mrs. Curry said. ''Who's going to bring a business here after hearing about this?''

Still, she said, ''We have to go on.''We can't vacate the town.'