On 17 January 1920, Prohibition was instituted by law in the United States. Soon, the smuggling of alcoholic beverages along the coastlines of the United States became widespread and blatant. The Treasury Department eventually determined that the United States Coast Guard simply did not have the ships to constitute a successful patrol. To cope with the problem, President Calvin Coolidge in 1924 authorized the transfer from the Navy to the Coast Guard of twenty old destroyers that were in reserve and out of commission. "Wainwright" was activated and acquired by the Coast Guard on 2 April 1926, as part of a second group of five to augment the original twenty.