the u.s. revenue cutter service (usrcs) was set up in 1790 when president george washington signed an act allowing the building of 10 boats called "cutters". the service was first suggested in a letter by alexander hamilton as a way to collect tariffs which were being lost to smuggling. they were also tasked with making sure shipments of goods from the united states were getting through to markets in other countries. the first coast guard station was in newburyport, massachusetts. until the re-establishment of the navy in 1798, the revenue cutter service was the only naval force of the early united states.