First off, I realize the 1866 was never chambered in .38-40. It was also never chamber in .38 special, 44 Special, .44-40, or .45 Colt. There is no way to have a historically correct replica because the .44 Flat has been out of print of 75 years. You can come close with .44 Special and ,45 Schofield using a 200 grain bullet and 27 grains of FFG. Problem is the blow back is awful with BP. I am a fan of the .44-40 (which my Henry is in) and the .38-40, especially as BP cartridges.
I do not mind a bit that my 1866 is in .38-40, and in retrospect I prefer the cartridge to the .44 WCF just a might. I am using almost the same Trail Boss load I use in my 44-40, except the bullet is 180 grains and the 44-40 is 200. I use 7.0 of trail boss, which gives the 44-40 about 1120 fps. The 180 might be a tad faster, so I am backing to 6.5 grains.
Yes I know that is above the posted loads in the manuals (where top load is only 9,000 PSI according to Hidgden/IMR, and SAAMI is 13,000 + for 38-40 and 44-40. This is, however, based on data from Hodgden.
https://www.hodgdon.com/wp-content/uploads/2016/11/trail-boss-reduced-loads-r_p.pdfUsing this method, I came up with a tad over 9 grains to the base of the bullet, and the starting load 70% was 6.37 grains for the starting load. If you read the information from Hodgden, this formula works for all rifles AND PISTOLS! Don't argu with me, argue with them.
I have tried 4.5 to 5.5 grains and it is a dismal mouse phart load. Fine for the reigning wisdom of 24x24" rifle targets at 10 yards, but not for our club. We regularly shoot turkey and ram an 50 yards at my club, and even 75 yards. At 7.0 grains, the extreme spread is high about 100 fps, so I am dropping to 6.5 for a start (which is about minimum according to Hodgden's generic formula).