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Though the U.S. Navy and Marine Corps had adopted limited numbers of smokeless powder and bolt-action rifles, the .30-40 was the first cartridge adopted by the US Army that was designed from the outset for smokeless powder. It was patterned after .303 British, to which it is very similar geometrically.[7] After a brief experiment with a 230-grain bullet loading, the .30 Army loading was standardized in 1894 using a 220-grain (14 g) metal-jacketed round-nose bullet with 40 gr (2.6 g) of nitrocellulose powder. This loading developed a maximum velocity of 2,000 ft/s (610 m/s) in the 30-inch (760 mm) barrel of the Krag rifle,[8] and 1,960 ft/s (600 m/s) in the 22-inch (560 mm) barrel of the Krag carbine.

The rimmed .30-40 round was also known as .30 Army or .30 U.S. Although the .30-40 Krag was the first smokeless powder round adopted by the U.S. military, it retained the ""caliber-charge"" naming system of earlier black powder cartridges, i.e. a .30-caliber bullet propelled by 40 grains (2.6 g) of smokeless powder. The first use of a smokeless powder round by Winchester was a single shot in 30-40, and it was one of only three rounds for which the 1895 Winchester lever action, introduced in 1896, was originally chambered.[9]

From the outset, the .30-40 cartridge proved popular for hunting and was chambered in a variety of firearms. In 1899, a Krag in .30-40 caliber was used to shoot the world-record Rocky Mountain elk. The record stood until the latter half of the 20th century.

In October 1899, after reviewing the experiences of the Spanish–American War, U.S. Army ordnance authorities developed a new loading for the .30 Army used in the Krag rifle, in an attempt to match the ballistics of the 7×57mm Mauser cartridge employed by Spanish forces in that conflict. The new loading increased the muzzle velocity in the rifle version of the Krag to 2,200 ft/s (670 m/s) at 45,000 psi. However, once the new loading was issued, reports of cracked locking lugs on service Krags began to surface. In March 1900, the remaining stocks of this ammunition (some 3.5 million rounds) were returned to the arsenals, broken down, and reloaded back to the original 2,000 ft/s (610 m/s) specification.[citation needed]"