With the signing of the Treaty of New Brunswick (July 20th, 1867) the War Between the States came to an end. The United States calls the result a draw, but to the Confederacy it was a great yet costly victory, as they were now totally independent and recognized by world powers. Almost immediately the Confederate government began looking for sources of quick revenue in order to rebuild, and they found it in Texas.
Texas, as a whole, saw the least amount of action during the war, and thus did not suffer the losses to resources or infrastructure the rest of the nation had. With the war ended and soldiers returning home, it took only a few months for the economy of Texas to surpass any other Confederate state. As a result the Confederate government began requesting goods and cash from the wealthy state in order to support the more beleaguered states like Tennessee and Virginia. Texas complied, but immediately the politicians and ranchers of Texas began working on a means to protect themselves from having to feed and repair the rest of the nation.
Within just a year, the Texas congress sent a notice to the Confederate President that they were going to secede from the country and strike out for themselves. The initial reaction was just as Lincoln reacted when North Carolina did the same to the USA, but more sensible heads prevailed and the two countries sent representatives to New Orleans to discuss the terms of secession.
After two years of work, and 6 million Confederate dollars in gold bullion, cattle, and cotton, an agreement was struck. October 5th, 1870 in a grand ceremony at the borders of the Confederacy, Texas, and the Indian Territory of Oklahoma the two governments proclaimed the formation of the Republic of Texas, and the creation of the Confederate State of Seqoyah with the immediate signing of a trade treaty and alliance between the two nations.