Peay's death the previous year. McAlister had the support of Crump and Howse, while Horton had the support of powerful publisher Luke Lea. A third candidate, Lewis S. Pope, also sought the nomination. Though the primary campaign was hard-fought, McAlister fell short, losing to Horton 97,333 votes to 92,017 (Pope tallied just 27,779 votes). By late 1930, the effects of the stock market crash of 1929 had reached Tennessee. A few days after Horton's victory in the general election, numerous banks controlled by Lea's business associate, Rogers Caldwell, failed, wiping out over $6 million in state deposits. Horton faced impeachment, and Lea was indicted on charges of bank fraud. While the motion calling for Horton's impeachment failed in the state House, both Caldwell and Lea were eventually convicted on charges of bank fraud. McAlister, who had warned of the impending crisis, was reappointed state treasurer, and sought the party's nomination for governor again in 1932. Although Horton had survived impeachment, he did not seek further reelection, and McAlister's main competitors were Pope and former governor Malcolm R. Patterson. Crump's support, which gave McAlister a 25,000-vote advantage in Shelby County, proved to be the deciding factor, as McAlister won the nomination, 117,400 votes to 108,400 for Pope, and 60,520 for Patterson. Pope accused Crump of voter fraud, and ran against McAlister in the general election as an independent. On election day, McAlister won easily, with 169,075 votes to 117,797 for the Republican candidate, John E. McCall, and 106,990 for Pope. Facing a $6 million state debt and an economy ravaged by business and bank failures, McAlister immediately began trimming the state government. He slashed over 2,300 jobs from the government workforce, and cut $7 million in state spending. These cuts included the cost of the governor's mansion, which McAlister reduced from $35,000 per year to just $1,000. McAlister supported the Tennessee Valley Authority and other Depression-era federal programs. The construction of Norris Dam and Pickwick Landing Dam began during his tenure. In April 1933, shortly after the beginning of McAlister's term, the state adopted the iris as the state flower, and the mockingbird as the state bird. In 1934, Pope, determined to break Crump's power, again challenged McAlister for the Democratic nomination, but came up short, winning just 137,253 votes to McAlister's 191,460. In the general election, Pope once again ran as an independent, and tried to form a fusion ticket