After the British-Canadian victory at Albany, in addition to earlier Confederate victories at Antietam and Gettysburg. Lincoln asks John A. Macdonald for a peace treaty. However, Macdonald only agrees to a ceasefire, as he insists on recognizing the Confederacy as an independent nation. Lincoln, realizing that Confederate troops are marching toward Washington, DC, and that he can not deal with the Confederacy and Britain, decides to call a meeting of himself, Macdonald, and Jefferson Davis in Trenton, New Jersey. Lincoln chose this place because it was out of reach of both armies.
After taking half a month to get to Trenton, they arrive on March 3rd, 1864. They had many arguments on different topics, including borders, slavery, Westward expansion, and recognition of the Confederacy. Eventually, these topics are addressed in the Treaty, and Lincoln signs the Treaty on March 23rd, 1864.
Macdonald and Davis insisted that they would only accept a treaty where the Union is required to recognize the Confederacy and make peace. The Union, wanting to end the war, agrees to this.
Lincoln agreed to let slavery occur in the Confederacy, but knew that he would soon pass a bill banning slavery in the North. Lincoln also agreed to not aid slaves from escaping the South, in exchange for Davis agreeing to not search Northern territory for escaped slaves without Union permission.
BordersThe main topic of debate was about which states would join the Confederacy and which would join the Union. The states of Texas, Mississippi, Arkansas, Louisiana, Tennessee, Alabama, Florida, Georgia, South Carolina, North Carolina, and Virginia were all immediately agreed upon as Confederate States, as well as the Oklahoma and Arizona Territories. The key issue was with Delaware, Maryland, Kentucky, Missouri, and the Kansas Territory. After much debating, Lincoln agrees to take just Maryland and Delaware so that DC is not surrounded, but gives up Kansas Territory, Missouri, and even his home state of Kentucky.
The Confederacy agrees to never get to the Pacific Ocean within continental United States. The Confederacy, However, gets the Utah and Colorado Territories. They Would not get Nevada or anything North of Utah's panhandle (which was much longer than it is today.
There were three main other issues. The first was that neither side would push natives from within their borders into the other country's. Also, the South would not block off access of goods for foreign countries by trade via the Mississippi River, and that the Southern section of this river would be shared. Finally, the USA and CSA agreed to let its citizens choose which country they would like to be a part of, allowing citizens to immigrate across the border.