Reid was laid down by the Bethlehem Shipbuilding Corporation, Squantum, Massachusetts, 9 September 1919; launched 15 October 1919; sponsored by Mrs. Joseph W. Powell; and commissioned 3 December 1919.

Assigned to Squadron 3, Atlantic Fleet, Reid completed shakedown off Cuba in February 1920; participated in battle practice in March; and on 26 April put into New York.

By 6 July she was at Newport, Rhode Island, whence she made several runs to New York prior to shifting to Charleston, South Carolina toward the end of September.

In late January 1923 Reid returned to Guantanamo Bay for winter maneuvers, and in February she continued on to the Panama Canal Zone for battle practice.

From 24 April to 12 June 1927, she participated in the second Nicaraguan campaign - cruising off that coast, delivering supplies and mail to Marine detachments ashore, and assisting in the collecting of arms from allied forces.