Lee's Decisive Battle, the Southern Victory

By September 1862, the American Civil War had been raging for over a year. Union victories in the west had been overshadowed by Confederate General Robert E. Lee's string of victories throughout that summer, aswell as the need to decisevely defeat the Union Army to bring in Britain and France, led Lee to launch an invasion of Maryland.

Hoping a victory on Northern soil would break Union morale and allow the south to end the war, the Army of Northern Virginia was near sharpsburg when it learned the Union Army of the Potomac, was near. Lee's plan, which involved splitting his army, aswell as the movement of every brigade, Division, and Corps, had been discovered by union troops, however Confederate cavalry had discovered the Union was maneuvaring to counter.

Deciding to surprise attack with an encirclement and flanking maneuver, Lee had his troops charge the Union left flank, breaking through fairly quickly, and succeeding in cutting the Union off from Sharpsburg. The attack then pushed in, squeezing the Union lines to the point that the army was split.

Pressing the advantage, Lee commited all his men on the enemy flank    cutting union troops to pieces. The Confederates broke through and the flank collapsed. With one of their flanks destroyed, and with the other under intense attack, McClellan lost his nerve and retreated.

Upon learning McClellan had been defeated at Sharpsburg, Lincoln told the officer to counterattack, to keep Lee busy until reinforcements arrived. McClellan, cautious, and believing that he was outnumbered two to one, refused. Lee, upon realizing McClellan wouldn't attack, Lee had his army march towards Washington.

Lee's attack suffered casualties, however the ANV secured Washington in the end. Lee handed Lincoln a note that demanded a surrender, or Lee would occupy Maryland. Lincoln had no choice. Not only did Lee win decisively, Britain and France had recognized the CSA, and were mobilizing their armies.

The Union accepted defeat, and allowed the Confederates to keep their territory. The Union was forced to accept the loss of half of the New Mexico and Arizona territories. The indian territory between Texas and Arkansas(Oklahoma in our timeline), was also ceded.

Missouri and Kentucky stayed in the Union, as did Maryland and Delaware. The Union tried to gain Eastern Tenessee, which wanted to stay with the Union.

Nevertheless, the final territorial situation didn't change much. Both sides kept important territories, however resentment and anger was prevalent on both sides of the border. With the district of Columbia faced with the guns of Virginia, the state capital was moved to Philadelphia.