Gretchen was built as a private motorboat. On 30 July 1917, the U.S. Navy acquired her from her owner, Sylvanus Stokes, for use as a section patrol boat during World War I. She was placed in service as USS Gretchen (SP-423). Assigned to the 5th Naval District, Gretchen was found unsuited for use in patrol duties. The Navy returned her to her owner on 1 November 1917. Gretchen should not be confused with USS Gretchen (SP-1181), another patrol vessel in U.S. Navy service at the same time.
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