The Insurgency:
Even though the Confederacy had won the war, it was still dealing with several Unionist militias in Kentucky,Tennessee,Missouri,Maryland,and Delaware, everyday the CS Army were dealing with people unwilling to accept there state had been taken over by Jefferson Davis,while there were some who had accepted the lost and moved north to the US, some Anti-Slavery holdouts would adopt guerrilla tactics to destroy Confederate troops tying down the border states, Jefferson Davis however focused on his own Civil affairs rather than Military ones which he often delegated to Confederate Generals such as Robert E Lee, A very controversial act would be shape the Confederacy as a whole, The Christian Act of 1866, would ban all religions except those based off the Christian Religion, however some Jewish Families were allowed to practice Judaism so as long as they were not "destroying the Christian Nation" such as Judah P. Benjamin's family, Jefferson Davis would also continue Slavery despite suggestions from its ally Great Britain not to, Blacks making a last ditch effort to flee to the US or Canada were often taken back to their owners by Confederate Troops, this would draw heavy criticism from the US as it had abolished Slavery almost immediately after the war,many thought a second war would happen soon.
Recovering from the Loss:
The most Americans in the US were disappointed that the Union lost the War, Lincoln would be known as "The President that lost the South" and would not be re-elected in 1864, However westward expansion was rampant as Ladies and Gentlemen from the East often migrated to populate the barren State of California,Oregon and other Territories,Nevada was given statehood soon after the War,It still was not looking good as the economic downfall from the loss of the war, as a result George B McClellan was elected President of the United States,Americans hoped that he would improve the economy and do better then Lincoln did.