"The second Official Flag of the Confederacy. On May 1st,1863, a second design was adopted, placing the Battle Flag (also known as the "Southern Cross") as the canton on a white field. This flag was easily mistaken for a white flag of surrender especially when the air was calm and the flag hung limply.
The flag now had 13 stars having been joined officially by four more states, Virginia (April 17, 1861), Arkansas (May 6, 1861), Tennessee (May 7, 1861), North Carolina (May 21, 1861). Efforts to secede failed in Kentucky and Missouri though those states were represented by two of the stars."
(CITED FROM: http://www.usflag.org/history/confederatestarsandbars.html)