This is a rather large flag, measuring 16.5 ft hoist and 24 ft on the fly. The canton itself is 10.4 x 10 ft. Appears to be rather good quality bunting and quality skilled assembly. It has some evidence of use, but is in good shape.
At the time we couldnt make out if the secondary noted hand written inscription was "Red" or "Reb" Ensign, but seems now it could have been either. The respective ink stamp, the lower line all concur looks like "Liverpool" the upper line is more faded and difficult to read but possibly could be "Jxxx Gordon" or something similar, that was a guess based on what letter charactors that could be made out.
I would be very interested in what British makers were known to have made them, also the respective fleet that used the "Red Ensign". Were these only intended for British military vessels or is it known if any private owned British ships used them too?... maybe followed military habits?, or as you said possibly parts made from other British flag.
I was approaching the research on this in two different angles. The flag itself via maker, use, and hopefully comparison with any other known British maker CS Flags. Then research on any possible ships that could be associated. I have located two different British commercial vessels so named that are related to Liverpool based companies that existed during the war, and both were active in going through Halifax/Nova Scotia where this flag was reportedly passed on. Unfortunately no date or year was mentioned when this event occured. But did have a passing reference in the museum card "during the era that the Confederate Steamer CSS Tallahassee made its daring and thrilling escape to the sea". Since many vessels used Alias and the activities were quite covert at best knowing it will probably difficult to locate any solid confirming evidence. But working to narrow the research range fodder to see what might turn up.
Frederick