After a succession of devastating defeats in 1863, why did Confederate leaders still believe they could achieve a favorable negotiated peace settlement?They believed the continued growth in the size of their army would give them an advantage over the weakening Union.They hoped that by fighting a war of attrition, war-weary northerners would eventually agree to negotiate peace.The strength of the Confederacy's industrial economy had grown tremendously during the war.By 1864, most slaves had declared their loyalty to the Confederate cause.The Union was bankrupt and unable to fight aggressively.

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