Martin Van Buren created an efficient state political organization called the Albany Regency.
The north would either surrender or negotiate a peace agreement that let the confederacy be independent
Mostly, after WWI, Britain promised them their current stretch of land in the Middle East. While Britain did not deliver, this did give them their claims, and their holdings were secured in WWII and further legitimized in the current war on terror.
The major increase in the level of federal government spending occurred following the Great Depression, with the New Deal put into place a variety of government programs such as the WPA to help people find employment.