During the war the Confederacy made a trade agreement with the Republic of Texas to supply Texas with cotton and tobacco in exchange for diesel engines and equipment. To keep troop count up, General Lee proposed granting freedom to the slaves that would enlist for a term. Later to gain the full support of the British, the CSA chose to completely abolish slavery. They maintained their military strength by requiring all citizens (white and black) to serve a term in the army.
Once the confederate dollar was tied to the British Pound, the CSA was able to afford enough machines of war from the Republic of Texas to draw the war into a stalemate and eventually win their independence. After the cease fire agreements were signed the relationship between the CSA and the USA remained tense, each side waiting for the other to break the terms. Even though the war became a cold one, the Confederacy continues to focus on their military.
Although slavery was abolished in the CSA, indentured servitude is now a matter of class instead of race. Company farms, railroads, and even the government use indentured servants for the majority of their labor.
The chief exports of the CSA are cotton and tobacco.
In 1850 oil was discovered beneath the Texas soil. The republic was able to pay off it's debt to the Union and remain independent. Soon big diesel powered engines were being developed, more powerful than coal and with a more consistent output. When the war between the states started Texas was able to remain an independent. Later Texas formed an exclusive trade agreement with the Confederacy by selling them diesel powered engines of war.
Even after the war the Republic of Texas continued to improve on the designs of their war machines, selling to both the Union and the Confederacy as well as the rail road companies that could afford them.
Texas is governed by a council, that is overseen by a President. The council is made up of a combination of elected officials and business owners who have purchased their seats.
The chief exports of the Republic of Texas are cattle and oil.
The region North of the divide also known as The Union. At the time of the split the Union had stronger industrial and economic standing than the Confederacy and felt the war would be over quickly. As the war stretched on the Union dedicated more and more resources to effort, eventually enforcing war rationing of the civilian population and then a draft. The Union even spent much of the national treasury on contracts with mining companies and steel manufactures to get the metals needed to produce the weapons they needed to continue the war.
During the prolonged war the Union moved their capitol into New York, sharing the city with their financial center. By the time of the cease fire the Union had financially weakened significantly and they welcomed corporate donors. The Union's nation debt is now held by a handful of mining and rail companies heavily influencing government policies.
The chief exports of the Union are coal, and ore.