THE YEAR WAS CHARACTERIZED BY INCREASED PRESSURES ON STAFF DUE TO HEAVIER WORK LOADS RESULTING FROM NEW BUSINESS AND THE LIMITATION ON HIRING. THE MOST SIGNIFICANT EVENT WAS THE PUBLICATION OF THE REPORT OF THE ROYAL COMMISSION ON THE COURTS, WHICH IS EXPECTED TO RESULT IN MAJOR IMPROVEMENTS IN COURT OPERATIONS IN THE YEARS AHEAD. WHILE THE MALE PRISON POPULATION CONTINUED TO DROP, THE NUMBER OF FEMALE INMATES INCREASED, AGGRAVATING DOCUMENTED UNSATISFACTORY CONDITIONS IN WOMEN'S PRISONS. THERE WAS A SMALL DECREASE IN ESCAPES OF MALE INMATES, A POSSIBLE REFLECTION OF THE STABILIZATION OF A SATISFACTORY RATIO BETWEEN STAFF AND INMATES. THE POLICY OF GIVING INMATES MORE COMMUNITY CONTACT WAS REFLECTED IN THE INCREASED NUMBERS OF INMATES GIVEN WORK AND HOME PAROLE DURING THE YEAR, TOGETHER WITH THE EXPANSION OF INMATE PARTICIPATION IN COMMUNITY ACTIVITIES. NUMBERS OF OFFENDERS HANDLED BY CORRECTIONS INCREASED, NEW PROBATIONER EMPLOYMENT PROGRAMS WERE CREATED, AND WORKLOADS OF THE MAGISTRATE'S AND SUPREME COURTS REMAINED CONSTANT AND INCREASED, RESPECTIVELY. OTHER DATA PRESENTED REFER TO ACTIVITIES OF THE PATENTS AND LAND AND DEEDS DIVISIONS OF THE DEPARTMENT OF JUSTICE AND THE COMMERCIAL AFFAIRS DIVISION OF THE SECURITIES COMMISSION. THE APPENDIXES PROVIDE INMATE, PAROLE, AND COURT STATISTICS FOR 1978. (RCB)