It was controversial when Senate President Manuel L. Quezon accused Sergio Osmeña of autocratic leadership and for his failure in handling the economic crisis which began in 1919.

[1] When Warren G. Harding, then elected U.S. president, sent the Wood-Forbes Mission for the Philippine Islands in April 1921, Quezon became worried of Osmeña's autocratic party leadership.

For Quezon, Osmeña's leadership would harm the Nacionalista Party due to the financial mess of the Philippine National Bank.

That same month, representatives approved a resolution expressing confidence to Osmeña's leadership in government, the senate did not take action.

Due to the severity of the leadership crisis, Osmeña also resigned as Nacionalista Party leader with reluctance from its members.