THE DISCUSSION COVERS THE CONSTRUCTION OF THE JEFFERSONVILLE PRISON AND ITS OPERATION UNDER THE LEASE SYSTEM FROM 1821-1856. DEVELOPMENTS DURING THE ADMINISTRATIONS OF VARIOUS GOVERNORS DURING THIS PERIOD ARE NOTED, AS ARE SOCIAL AND FISCAL DEVELOPMENTS (CONVICT POPULATION, FOOD AND CLOTHING, RELIGION AND EDUCATION, PUNISHMENT, MEDICAL SERVICES, ESCAPES, PARDONS, FINANCES) IN THE PRISON. SIMILAR REVIEWS ARE PRESENTED FOR THE PERIODS OF 1857 THROUGH 1896, WHEN INDIANA'S TWO PRISONS WERE OPERATED UNDER A CONTRACT SYSTEM WHEREBY PRISONERS WERE HIRED OUT TO CONTRACTORS RATHER THAN LEASED, AND 1897 THROUGH 1933, WHEN INDIANA ESTABLISHED A GRADED PRISON SYSTEM INCLUDING A STATE PRISON, A REFORMATORY, A 'HOUSE OF REFUGE' FOR JUVENILE OFFENDERS, AND INDUSTRIAL SCHOOL FOR GIRLS, AND A WOMEN'S PRISON. IT IS POINTED OUT THAT THE HISTORY OF PRISON POLICY IN INDIANA IS ONE OF COMPROMISES BETWEEN GOVERNORS AND LEGISLATORS. THE MOLDERS OF THE PENITENTIARY SYSTEM -- POLITICIANS, REFORMERS, PRISON OFFICIALS -- GENERALLY WERE CONFRONTED BY AN APATHETIC PUBLIC. FOR MANY YEARS, THE PENITENTIARIES WERE A POLITICAL PAWN, WITH EACH PARTY USING CORRECTIONS POSITIONS TO REWARD FRIENDS. NEWSPAPERS WERE BOTH AN ASSET AND LIABILITY, SOMETIMES TAKING THE LEAD IN PRISON REFORM AND OTHER TIMES CLOUDING THE ISSUE WITH PARTISAN REPORTING. CONVICT LABOR HAD BEEN A LONGSTANDING, SERIOUS PROBLEM. THE PRISON REFORM MOVEMENT PEAKED DURING THE PROGRESSIVE ERA AND THEN DIMINISHED WITH THE ASCENDANCY OF CONSERVATIVE REPUBLICANS IN INDIANA POLITICS IN 1917. THOUGH THE WORST EVILS HAD BEEN ELIMINATED FROM INDIANA'S PRISONS BY 1933, THE STATE STILL DID NOT HAVE A MODERN PENITENTIARY SYSTEM. THE OVERRIDING EMPHASIS REMAINED ON VINDICTIVENESS, PUNISHMENT, AND FISCAL MATTERS RATHER THAN ON REHABILITATION. A BIBLIOGRAPHY IS INCLUDED. (AUTHOR ABSTRACT MODIFIED--LKM)