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NB.This article is designed to assist in giving an overview of the convict system.Information should be verified with official sources

Convict System in America v Convict System in the Colonies.

It may not be generally known,that,in America, the Crown servants
[by some designated convicts] not employed by the State,amounting
to several thousands, are let out to contractors for the term of one
year.

Proposals are there received for the employment of any number of them,
in such labour as the contractor may prefer,subject to the regulations
established for the government of the prisons; and persons disposed 
to employ them, invariably apply to either the Directors or to the
Warden, or at the prisons; and every information regarding the
prisoners and the work they can perform, with tools belonging to 
the State,are readily communicated.
Among this class of people are men of remarkable ingenuity and skill;
and the price at which their time can be let out, makes it an
object worthy of very general consideration. Payment for the labour
of the prisoners is made every quarter, and bonds given for the same.
Thus is appears, that in America those who forfeit their rights as
free men are treated very differently to those either in these Colonies
or in England.

Upon the arrival of prisoners here,[Aust] they are generally assigned 
to the services of Settlers, or other respectable inhabitants; and
instead  of working in a state of slavery, as in America, they are 
well clothed, and victualled by their employers, and moreover 
recieve a compensation in wages for their labour.

If a man is industrious and well disposed to his master, he generally
receives additional encouragement. He throws off the badge of
prison clothing, and appears,literally speaking, the same as a free
man. If he is a good and confidential servant, he is in a few years
rewarded by a ticket of leave, which enables him to work for himself,
in the same manner as those who enjoy freedom. Not so in America; for
if he renders any important services to our Government [and there 
are many opportunities for so doing], they are almost sure to
receive a conditional or free pardon. 

Upwards of fifty men have experienced this act of clemency even 
during the present year; besides as many more in tickets of leave.
This of itself is sufficient to induce the whole class of prisoners
in these Colonies to conduct themselves consistent with their station
in life. IF their services are not rewarded one time, they may be 
assured they will not be overlooked at some distant period. It is
the policy of the Government to hold out every possible encouragement 
to such of them as evince a feeling to retrieve their former character.
If they could only see this in its true colours, we should seldom
hear of bush-ranging, and its attendant consequences - evil,misery and
death.!  We have been induced to make these observations from the
knowledge we possess on the subject, as regards the difference of the
employment of prisoners in America, in these distant colonies, and on 
board the Hulks in England.
Source - CT Sept 1 1826