Following the war, Carroll resumed his business career in Nashville. In 1818, he became part owner of the New Orleans steamboat, the
General Jackson. On March 11, 1819, after a treacherous journey up the Mississippi, Ohio and Cumberland rivers, the
General Jackson became the first steamboat to reach Nashville. During the
Panic of 1819, Carroll's business failed, and he was forced into bankruptcy. In
1821, Carroll, still immensely popular from his War of 1812 endeavors, ran for governor. Although his opponent,
Edward Ward, was backed by the state's political elite, including Andrew Jackson,
Hugh Lawson White and
Joseph McMinn, Carroll gained the support of Jackson foes
John Williams and
Davy Crockett, and was able to harness the anti-establishment sentiment that had arisen in the wake of the financial crisis. Carrol's governorship was noted for the establishment of a more progressive (for the era)
Penal Code, which replaced corporal punishment with a state prison system, as well as the establishment of an insane asylum and the establishment of a
Chancery Court. He also persistently advocated for government-funded internal improvements, which helped the state's businesses. During his final term, the
state constitution of 1796 was supplanted by a new one which gave more executive power to the governor; although this document was technically superseded by the current one in 1870, that document carries over very many of the provisions of the 1834 constitution, upon which it was largely based. Popular provisions in the new constitution included an equitable land tax (which benefited small farmers) and the requirement that county officials be popularly elected, rather than appointed. Carroll claimed that the new constitution allowed him to seek a fourth consecutive term. He was doomed by rising
Whig sentiment in the state, however, and
lost the gubernatorial electionlost the gubernatorial election to
Newton Cannon by a vote of 41,970 to 31,205. He persistently campaigned for one of the state's U. S. Senate seats in subsequent years, but was never successful. Carroll served as governor of Tennessee longer than anyone else has to this point, even fellow six-term governor Sevier. Sevier's first term was unusually short due to the time of year of the admission of Tennessee into the Union. Carroll's gubernatorial service totaled twelve years and twelve days. ==Death==