Saphroneth
Banned
Frankly it's not helpful to stereotype the Confederacy any more than it is to whitewash them. They're not a great deal worse than the United States were a relatively short time beforehand slaves-wise (meaning when the US was divided between "slavery is good" and "get those blacks out of our state" states), and if they can achieve even a fraction of the productivity the US managed on extremely low wages in the Gilded Age they'll be fairly comfortable. (Not OTL-US standards, but the TTL-US won't be as rich as OTL-US either.)But will the CSA be able to use that money? Given their horrible society, arch-conservative to boot, what are the odds the money will be squandered, used to prop up a failing system and oppress the slaves, leading to a harsh defeat in the next war?
As for being able to use the money, in a general sense - well, yes, actually. Here the Confederate myth that they're all hard-as-nails frontiersmen actually helps them considerably as it provides the impetus for reasonable-quality reserves with plenty of rifle training, and if you have that then you have the basic building blocks you need for an army that can mobilize relatively quickly (infantry wise, anyway).
With Kentucky they have the primary US source of really good horses, and they certainly have the attitude for good cavalry.
And as for artillery - Mr. Krupp sells to all sorts of people.
It won't work out quite as rosy as I describe, of course, but the Confederacy has no lack of tools needed to produce a modern military and their slave-owning nature as a society means that a larger proportion of their white population is capable of being mobilized than a comparable Union population.
As for the navy... in the 1890s and 1900s, getting a modern navy was/is/will be extremely simple even if you don't have the expertise. Buy it!
Ships, especially battleships, are matters of prestige - and a modern British battleship or two is the kind of thing the Confederacy would buy to show off.