Etymology
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cutter (n.)

late 12c. as a surname, "one who cuts" in any sense, "one who shapes or forms by cutting," agent noun from cut (v.). From 1630s as "instrument or tool for cutting."

As a type of small, single-masted vessel, from 1762, earlier "double-banked boat belonging to a ship of war" (1745); perhaps so called from the notion of moving quickly, or of "cutting" through the water.

Revenue cutter, a light-armed government vessel commissioned for the prevention of smuggling and the enforcement of the customs regulations. Formerly the vessels for the protection of the United States revenue were cutter-rigged, but now the name is applied indiscriminately, although almost all the revenue vessels are steamers, and the few remaining sailing vessels are schooner-rigged. [Century Dictionary, 1889]

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Definitions of cutter

cutter (n.)
someone who cuts or carves stone;
Synonyms: stonecutter
cutter (n.)
someone who carves the meat;
Synonyms: carver
cutter (n.)
someone whose work is cutting (as e.g. cutting cloth for garments);
cutter (n.)
a boat for communication between ship and shore;
Synonyms: tender / ship's boat / pinnace
cutter (n.)
a sailing vessel with a single mast set further back than the mast of a sloop;
cutter (n.)
a cutting implement; a tool for cutting;
Synonyms: cutlery / cutting tool
From wordnet.princeton.edu