Heres a quote from William Thompson, the designer of the flag on what it represents. Sounds like a neat guy. (The caps at the end are his)
"Our idea is simply to combine the present battle flag with a pure white standard sheet; our southern cross, blue, on a red field, to take the place on the white flag that is occupied by the blue union in the old United States flag or the St. George’s cross in the British flag. As a people, we are fighting to maintain the heaven ordained supremacy of the white man over the inferior or colored race; a white flag would thus be emblematic of our cause.… Such a flag would be a suitable emblem of our young confederacy … it would soon take rank among the proudest ensigns of the nations, and be hailed by the civilized world as THE WHITE MAN’S FLAG."