The British penal crisis of the 1780's originated in the American Revolution. Between 1717 and 1775, some 40,000 English convicts were exported to the American Colonies, but this policy terminated with America's independence in 1776. Subsequently, convicts were housed in obsolete naval vessels until the expected American defeat and the resumption of convict shipments to the colonies. When it became clear that an alternative policy was required, New South Wales (Australia) was selected as the site for a penal colony, a choice subsequently proven ill-conceived. The context of penal policymaking has not changed much over two centuries. The penal colony in Australia was a quick decision designed to meet short-term political exigencies. It seemed the least unattractive of a number of unattractive options. Faced with prison overcrowding and limited budgets, corrections policymakers search for any alternative that will provide apparent relief from the consequences of overcrowding. The obvious solution is to build more prisons, but there is a limit to the resources that can be invested in this area. A longer-term solution is to develop a sentencing structure that adjusts the demand for imprisonment to the available supply.