The rubber boom had ended, and economic depression was evident throughout all of Peru. The government of don Augusto B. Leguia had stopped remitting funding to the Loreto region, and the prefect paid with warrants that he negotiated. Because of these acts, the Defense Committee of Loreto was formed because people were dying of hungar.

        Then the Peruvian Army Captain Guillermo Cervantes accompanied by Lieutenant Emilio Samuel Torres Videla revealed themselves, rising in arms against the authorities of Iquitos and the government of the president, Augusto B. Leguia. Because of this, Cervantes joined with some of the members of the Defense Committee made up of don Ulises Reategui Morey, don Octavio de los Heros, don Ramon Alvis, and Lieutenant Torres Videla to print their own paper money to resolve the lack of circulating paper money and to subsidize the revolution's expenses.

When the revolution ended, the cervanteros had reached an issue of something more than 40,000 pounds. The revolutionaries exchanged these notes between 20 to 25 soles Cervanteros for the Peruvian Gold Pound. This money was the official currency and was also called "The Leguia Checks" (Los Cheques de Leguia). In November the exchange rate reached 35 soles for each Peruvian Gold Pound, and in December it had risen to 40 soles.

        This rebellion was also against Leguia, and Loreto Province and waited for the support of the rest of the country. But it was not to be, and therefore prices rose ten times their normal value. In January 1922, all legislation dictated that all payments be made with official currency. This was an order given by the Junta de Notables that had taken charge of the city of Iquitos. Leguia's repression was cruel, and it suffocated the rebellion on January 13, 1922.