THE FEDERAL BUREAU OF PRISONS WAS ESTABLISHED IN 1930 TO BRING ORDER INTO THE FEDERAL CORRECTIONAL PROCESS. UNTIL THAT TIME EACH INSTITUTION HAD BEEN INDEPENDENTLY ADMINISTERED AND ALL WERE FORTRESS-LIKE HUMAN WAREHOUSES. THE SYSTEM TODAY ATTEMPTS TO BALANCE PUNISHMENT, DETERRENCE, INCAPACITATION, AND REHABILITATION IN ITS PROGRAMS THROUGH AN INTEGRATED SYSTEM OF MAXIMUM, MEDIUM, AND MINIMUM SECURITY INSTITUTIONS AND HALFWAY HOUSES. THE INMATE POPULATION CONTINUED TO REACH UNPRECEDENTED LEVELS DURING 1977, INCREASING 11 PERCENT AND REACHING 30,262 ON SEPTEMBER 30, 1977. THIS COMES ON TOP OF A 15 PERCENT INCREASE FOR THE PRECEDING FISCAL YEAR. TO EASE OVERCROWDING, 29 PERCENT OF THE POPULATION IS CONFINED IN MINIMUM SECURITY FACILITIES OR IN 1 OF MORE THAN 430 FEDERAL AND NONFEDERAL COMMUNITY TREATMENT CENTERS. TWO COEDUCATIONAL FACILITIES REVERTED BACK TO MEN'S AND WOMEN'S PRISONS TO GIVE MORE FLEXIBILITY IN HANDLING THIS PROBLEM. THE BUREAU ALSO HELPS LOCAL JAILS THROUGH THE NATIONAL INSTITUTE OF CORRECTIONS, HAS EXPANDED THE FEDERAL PRISONS INDUSTRIES PROGRAM, HAS MODERNIZED TRAINING, AND HOPES TO REPLACE THREE AGING INSTITUTIONS WITH MORE MODERN FACILITIES. (GLR)