There is a display of lace made by female inmates in a former prison (Arizona Territorial Prison in Yuma, now a museum run by the State Parks of Arizona). The prison operated from 1876-1909. If you Google "Arizona prisons+lace" you can see at least one picture of the lace exhibit , with the caption"lace made by inmates for personal use and for barter". A friend who visited the place  said there was an extensive exhibit of the lace, so apparently, historically, there was no rule against prisoners using lacemaking tools.  http://travel.webshots.album/559730635QPVYAQ
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