Why Didn't Diplomacy Work to End Civil War?

In February 2, 1865, President Abraham Lincoln and his Irish valet sneaked out of Washington City and took a steamboat down to the mouth of the Chesapeake Bay. The next day he met with three representatives of the Confederacy to discuss ending the Civil War. The Hampton Roads Peace Conference, as it's known, is notable not for what was accomplished – nothing was – but for how, when, and why it took place at all.
In February, 1865, the Confederacy was clearly on the brink of collapse. The rebel armies were dogged but much diminished. General William Tecumseh Sherman had sacked Atlanta and was leaving a trail of devastation through Georgia. Ulysses S. Grant had Robert E. Lee pinned down at Petersburg, a rail center that was Richmond's last defense. A Union naval blockade had cut off all supplies. Everyone knew the end was a few months away at best.
With the war all but won, why would Lincoln go out of his way, literally, to parley with the enemy? The simplest answer is that he was looking already to the postwar future, and how best to deal with the insurgents. Many hardliners in his Republican Party and his Cabinet thought they knew the answer: utterly crush the rebels militarily, hang their leaders, free all their slaves, confiscate their other property, and subjugate the South as a conquered, occupied enemy.
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