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The Southern Victory in the Civil War has been hotly debated by Historians for decades, it's effects have had an impact across the world.
Gettysburg to Washington
In 1863 after the southern victory in Gettysburg and the destruction of the Army of the Potomac confederate forces begin their march south towards Washington. They are met with little resistance and even welcomed by the Pro-South southern Maryland. The Confederates occupy Baltimore and in October they reach D.C. Lincoln and most of his cabinet narrowly escape and relocate the government to Chicago as the city becomes a battleground.
The Battle of D.C. goes poorly for the Union as their northern supply lines are controlled by the Confederates. The North fights tooth and claw in the Stalingrad of the Civil War. In January the Union is forced to surrender the city. Afterward all Confederate forces are centered on the Maryland Campaign.
The Wars Closure
Following the D.C. failure Lincolns approval and approval for the war fell drastically. In November George B. McClellan won the presidential election (by promising an end to the war). In March he assumed the office. Lincoln left after failing in his duties. Shortly before leaving he issued the Emancipation Proclamation.
The new McClellan Government entered into negotiations with the C.S.A. immediately after taking office. In April 1865 a cease-fire was agreed to and occupied lands were returned back to the Union. The War had claimed millions of lives and ruined both sides economies.
The Confederate States of America began very poorly. Struggling to rebuild the south after the war without the Union Industrial Help. Likewise things in the north aren't going very well. The price of Cotton and other southern Agricultural Goods skyrocket. Both sides hit an economic recession. This is compounded when President Lee is forced to abolish slavery (from international pressure) in 1869 shortly before dying in office.
The 1870s hit both sides hard. The economic recession that befell the U.S. in 1877 also hurts the already hurting CSA. The Confederacy falls into a depression as does the north. As union strikes and a short lived communist revolution befall the United States food riots begin in Confederate Cities as the Agricultural Nation struggles to survive
Out West tension is brewing. Arizona and New Mexico as well other western territory remains in hazy areas. The North Claims Northern Arizona and New Mexico as well as everything north of the two states. They also lay claim to Oklahoma. The Confederacy denies the legitimacy of these claims saying that all of Arizona and New Mexico belong to them as well as Oklahoma. Soon Southern Settlers began appearing in American Territory and Americans appear in Southern Territory. This sparks the War of 1877.
The War of 1877
During the war The CSA Fought most of the war on the defensive. The US pushed into southern Arizona and New Mexico as well as North Texas. The War was marked by numerous Confederate losses. After just five months of fighting the more industrial and militarily advanced American Forces dominate Confederate Battalions and reach Austin Texas. Thus begins the Battle of Austin which after months of fighting ended in American Victory. However this victory came at a cost of tens of thousands of American lives and hundreds of thousands of Confederate Lives. America, though primed to re-capture the Confederacy stop just short the heart of Dixieland due to trouble at home and in 1878 a cease-fire was called. In the ensuing peace a DMZ was set up giving most of Texas to America and giving the US all western Territory.
The depression worsened after the war of 1877 in the south. Food Riots continued as the south begins to go into its own civil war in the 1880s. Meanwhile Industrialization begins to occur in the UK, Industrialization that can not happen in America without a unified nation. The North needs the South's agricultural products and the South needs what industries the North does have.
The Confederate Civil War is a series of uprisings in south that began in the early 1880s. The President deploys troops into the cities where the wide spread rioting is occurring. Among the agenda of the rioters is the return of slavery. This leads to widespread violence and lynchings against the blacks living in the south by rioters. Confederate Soldiers attempt to quell the uprisings by force killing dozens.
The United States seizes the opportunity to rid themselves of their rival. Having only recently assumed office after the death of President Garfield Chester A. Arthur begins sending weapons and aid to the rebel forces. This strengthens the rebels and soon the conflict comes to a boiling point. in 1882 the first true battle takes place as rebels in Richmond square off with Confederate Troops. Though the Confederates wins the battle several hundred are killed on both sides and the leaders of the rebellion are executed for treason. By 1885 the rebellion as a whole is crushed.
After a few years the situation in the CSA has not improved much. Another rebellion begins in 1890 this time America does more than aid the rebels. This time as battles break out across the south American Troops intervene and the US takes the opportunity to annex the CSA. This begins the Confederate-American War.
The Confederate-American War
In 1890 the War broke out as US Troops marched south towards Richmond and east from Austin The Confederacy though dealing with rioting and unmatched in numbers and technology mounts a serious defense. The south engages in scorched earth as the overwhelming American Forces push back the South down into the Carolina and wast towards the Mississippi. The CSA mounts a serious defense at New Orleans. The Battle of New Orleans would last the course of the war and claim tens of thousands and virtually destroy the city. The Locals resist the American Invaders and even begin to engage in Gorilla Warfare. The Capital of the CSA is relocated to Miami as the south slows the American advance.
Eventually as winter arrives the American advances slows around the Savannah River and the Mississippi River. The rebellion stops as the CSA unites to stop the Americans from taking over the CSA. A stalemate ensues during which both sides fail multiple times to cross the rivers and gain more land. which isn't broken until the American Navy lands in Jacksonville in 1892 opening a three point war. Soon Miami falls and the Confederate States of America surrender to the United States. The Gorilla Warfare continues however into the 20th Century.
The South has been decimated from the scorched earth approach and the war. The US falls into a serious debt as it tries to rebuild the south. Federal Troops occupy the south until 1900, at which time the states are admitted into the union.
Interestingly at this time the US was asked to help free the colonies of Cuba and Puerto Rico from Spain but couldn't due to internal problems. As such they remained colonies until the fall of Fascist Spain in 1975.
The US could finally begin full industrialization. In 1912 there were calls to elect Woodrow Wilson president. However it was too soon, the north refused the concept of a southern president and Champ Clark of Missouri (which remained in Union control after 1865) won the Democratic Nomination and eventually the White House. In 1916 James Cox of Ohio became President after Clark steps down due to health. Shortly after he took office the southern states received the Zimmerman Telegram
The Telegram stated that if the South fights America, Germany will return Confederate Sovereignty after the war. This set off riots and a rebellion in the south that caused Federal Troops to be deployed. The rebellions looked like the mist of another civil war. The Americans couldn't help the fight against Germany in France as Cox had initially hoped as too many troops were needed to quell the riots. The unrest heated into a full rebellion as news came back several riots were killed by Federal Troops. The people of Atlanta took over the city and killed the police and troops that continued to resist them. Soon in cities across the south similar scenes played out.
A state of emergency was declared as the Army battled the second Confederacy. In early 1918 after a year the Second Confederacy was crushed and its leaders killed. Eventually in 1920 Germany surrendered, but not before 25 Million Allies and 19 Million Central Power Troops died. Southern dislike of America continued well into the thirties. Fed up by Democrats who failed them in the 1910s the south began voting overwhelmingly Republican in 1920 as Warren G. Harding replaced Cox.
Finally United in War
In the thirties there were signs that the Empire of Japan posed a serious problem to American Security. In 1939 the conquered the Empire of Hawaii (which the US never had the opportunity to Annex in this timeline) and looked poised on conquering the Pacific. On December 7th 1941 San Francisco Harbor was attacked by Japanese Forces. This triggered American involvement in World War Two. Despite always being divided the US finally united to defeat this new foe.
The US eventually beat this foe through an island hoping campaign that ended with the liberating of most of Japans conquered territory. Russia invaded and conquered Japan in 1945 as the US and British finally liberated Australia. Meanwhile the Russian beat back the Germans and in late 1945 captured Paris the last Nazi Stronghold. Just a year before the US and UK through a joint force invaded and liberated North Africa.
The War that left mainland Europe in Russian Control allowed the US to finally come together, north and south to defeat a foe.
This is the end of this Alternate History Scenario. It would be near impossible to predict the future beyond this point or how America would respond to this Russian Dominated Japan and Europe. I just hope both North and South of the US has finally come together and awaits a brighter future.