Toro presided over a reformist experiment known as Military Socialism for a little over a year before being overthrown himself in another coup d'état which allowed Lieutenant Colonel Germán Busch to succeed to lead the junta on 13 July 1937.
[3] The aftermath of Bolivia's defeat in the Chaco War against Paraguay saw a swelling of national dissatisfaction with the traditional government establishment which had ruled the country for decades.
The culmination of months of labor union demonstrations and left-wing opposition came on 17 May 1936 when the military under Lieutenant Colonel Germán Busch, the Chief of the General Staff and head of the La Paz garrison, forced the resignation of President José Luis Tejada Sorzano in a bloodless coup.
Finally on 21 June, Busch enacted a self-coup which secured the permanent exile of Saavedra from the country and the termination of the co-government between the civil sectors and the military.
[5] The self-coup was executed without the prior knowledge nor consent of Toro who reluctantly issued his own manifesto the following day in which he expressed his compliance with the military's decision.
Though in another official statement Toro made a point to exonerate the PSU of any malfeasance, the coup was a major blow to the party from which it would never recover and resulted in Baldivieso's resignation as leader on 23 June, citing the invalidity of his position.