But as the Dust Bowl and Great Depression ravaged the Arkansas economy, Parnell's programs were blamed for bankrupting the state, and his popularity plummeted.

In the 1930 gubernatorial election, Parnell defeated the Republican J. O. Livesay, a district judge from Foreman in Little River County in Southwest Arkansas.

[3] The Republicans ran a newspaper advertisement prior to the 1930 general election in which it claimed the Democrats had given Arkansas "Inefficiency, wanton waste, coercive machine rule, and government for private gain at public expense."

The GOP pledged instead a "clean business administration, substantial tax reductions, honest audits, law enforcement, industrial leadership, and real statesmanship."

[4] Osro Cobb of Montgomery County, the only Republican member of the Arkansas House at the time, did not seek a third two-year term but managed Livesay's race against Parnell.

Cobb noted that Republicans at the time had no representation on Arkansas election boards and were not guaranteed precinct watcher positions.

The Parnell administration focused on establishing a state highway fund, creating a Bureau of Commerce and Industry, and upgrading the school system.