The Hunt:

Answer: Vicksburg

Explanation:
This image references the Siege of Vicksburg during the Civil War in 1863, when residents of the city famously took shelter in hand-dug caves along the bluffs to escape the relentless Union bombardment. The river, the steep earthworks, and the presence of people living in hollowed-out cliffside shelters are all iconic elements of the siege. The gunboats on the Mississippi River further situates the scene, while the newspaper, The Daily Citizen, was an actual Confederate paper printed in Vicksburg — even continuing publication on wallpaper when supplies ran low. All these clues unmistakably point to Vicksburg, Mississippi.