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Existing from 1861 to 1865, the Confederacy was originally formed by secession of seven slave-holding states-South Carolina, Mississippi, Florida, Alabama, Georgia, Louisiana, and Texas-in the Lower South region of the United States, whose economy was heavily dependent upon agriculture, particularly cotton, and a plantation system that relied upon the labor of African-American slaves. Convinced that white supremacy. At the February 1865 Hampton Roads Conference with Lincoln, senior Confederate officials rejected his invitation to. The Confederate States of America 1861-1865 started with an agrarian-based economy that relied heavily on slave-worked plantations for the production of cotton for export to Europe and to the northern US. If classed as an independent nation, the area of the Confederate States would have ranked as the fourth-richest country of the world in 1860. When the Union blockaded Confederate ports from summer 1861, exports of cotton fell 95 percent and the South had to restructure itself to emphasize the. The flags of the Confederate States of America have a history of three successive designs during the nation's from 1861 to 1865. The flags were known as the Stars and Bars, used from 1861 to 1863, the Stainless Banner, used from 1863 to 1865, and the Blood-Stained Banner, used in 1865 shortly before the Confederacy's dissolution. A rejected national flag design was also utilized as a battle flag by the Confederate army and featured in the Stainless Banner and Blood-Stained Banner designs. Led by Jefferson Davis and existing from 1861 to 1865, the Confederacy struggled for legitimacy and was never recognized as a sovereign nation. After suffering a crushing defeat in the Civil War, the Confederate States of America ceased to exist. North versus south. The southern and northern United States began to pull apart in the 19th century, culturally and economically, with slavery at the center of the rift. As early as 1850, South Carolina and Mississippi called for secession. Milestones: 18611865. NOTE TO READERS Milestones in the History of U. Foreign Relations has been retired and is no longer maintained. For more information, please see the full notice. Preventing Diplomatic Recognition of the Confederacy, 18611865. Rather, it was a series of diplomatic victories that ensured that the Confederacy would fail to achieve diplomatic recognition by even a single foreign government. Although this success can be attributed to the skill of Northern diplomats, the anti-slavery sentiments of the European populace, and European diversion to crises in Poland and Denmark, the most important factor stills rises from the battlefields on American soil. Montgomery, Alabama to May 1861 Richmond, Virginia May 1861-1865. Confederacy Articles. Explore articles from the History Net archives about Confederacy. The Confederacy, when used within or in reference to North America, generally means the Confederate States of America. It is also called the Southern Confederacy and refers to 11 states that renounced their existing agreement with others of the United States in 18601861 and attempted to establish a new nation in which the authority of the central government would be strictly limited and the institution of. The Confederacy acted as a separate government until defeated in the spring of 1865. Neither the commissioners sent abroad in 1861 nor the permanent envoys who replaced them were able to secure recognition from Great Britain, France, or any other European power. The South was able, however, to buy considerable war matériel and several fast ships that destroyed much Federal shipping on the high seas. Cover of an August 12, 1861, treaty between the Confederate States of America and several North American Indian tribes and bands west of Arkansas. The Newberry Library, Gift of Edward E. Ayer, 1911 A Britannica Publishing Partner. The Confederate States of America informally, the Confederacy was a government created from an alliance of eleven southern states which had seceded from the United States between December 1860 and April 1861. The American Civil War that was begun by the Confederate shelling of Fort Sumter proved disastrous four years of savage fighting ended with the fledgling government defeated and dissolved, and left the southern states a financial and industrial wreck. The main reason for secession was to. In the summer of 1861, the United States embarked on its first widespread use of paper money: the Demand Notes of 1861. During the Civil War, the Confederacy funded its military spending primarily by borrowing 54 as opposed to 14 by the Union which relied mostly on taxes. The financial situation got so desperate that in the later phases of the war, debt service began to rival war expenditures Burdekin, 1993. The song likely cemented the word Dixie in the American vocabulary as a synonym for the Southern United States. During the American Civil War, Dixie was adopted as a de facto anthem of the Confederacy