Conceptualizing the contemporary prison as a slum community appears to be more valid than characterizing it as a total institution set off from society. Labeled as untrustworthy and dangerous, inmates withdraw into territorial groupings segregated by race and ethnicity. The black prisoners' overwhelming concern with discrimination is confirmed by their disproportionate vulnerability to disciplinary measures and the largely white prison staff. Moreover, the black ghetto subculture has been particularly adaptive to the social organization of black prisoners with its emphasis on cunning, toughness, strong peer group orientation, and present-time orientation. In contrast, the core values of the Latin culture, particularly concern for family, may increase prison stress. However, barrio ties extend into prison life to provide support for Hispanic inmates. The high degree of conflict associated with Chicano prisoners in the West may be due to their involvement in the narcotics trade, as well as conflicts with territorial groups outside prison. In contrast to minorities, white prisoners tend to blame themselves rather than society for imprisonment, are vulnerable to threats to their external relations, and are less able to stand up to prison pressures. White inmates may retreat to protective custody or even join racist organizations. Relocating prisons near cities would help recruit minority staff, and both inmate self-government and smaller facilities would create contact situations that might lessen racial hostility. Over 60 references and 15 footnotes are included.