History
The practice was not reserved to captains in the earlier days. Captain Isaac Hull, chafing at not being able to progress further in rank, wrote in 1814 that, if no admirals were to be authorized, something should be done to prevent "every midshipman that has command of a gunboat on a separate station taking upon himself the name of Commodore."
Eventually the title of commodore was defined more strictly, and was reserved for captains so designated by the Navy Department, although the practice of retaining the title for life added some confusion. In 1857, Congress established the grade of Flag Officer. This generic title was intended "to promote the efficiency of the Navy," but differed little from the previous practice. Like the courtesy-title commodores, "flag officers" reverted to captain once their squadron command assignment was completed.
Read more about this topic: Commodore (United States)
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“In the history of the United States, there is no continuity at all. You can cut through it anywhere and nothing on this side of the cut has anything to do with anything on the other side.”
—Henry Brooks Adams (1838–1918)