The Betsy Ross flag was NOT the first American flag.
The Encyclopedia of the American Revolution is very clear; although Betsy Ross was a Philadelphia seamstress who is known to have made flag, the one with 13 five pointed stars in a circle, popularly called the Betsy Ross Flag, is not among the many flags historians consider seriously as a contender for the honor for being first. It seems the story stems from family lore made famous by her grandson, William Canby. He made a presentation to the Historical Society of Philadelphia in March of 1870 in which he spun the family myth which has since become so called history. The flag most historians believe to be the first American flag is the Bennington Flag.
None the less, this flag still represents the true spirit of 1776, and embodies the principles in which Southerners upheld in 1861.