From 1922 to 1924, he commanded USS Tennessee, before being appointed as Governor of the United States Virgin Islands.
Political pressure was also mounting as the Colonial Council, the local government body, voted to request greater authority over the islands but were denied.
On August 28, 1924, a hurricane swept through the islands, resulting in four deaths and one person still missing, all on St. John.
In addition, 300–400 houses were destroyed and the American Red Cross sent $5,000 (approximately $90,000 in 2023) in aid.
Williams resigned as Governor due to health problems in 1926 and retired from the Navy in 1927.