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some of this ammo nomenclature is very confusing. 30-30's also use .308 jacketed bullets. The ammo we know as .223 Remington..the bullet measures .224
etc,etc
Because .38 was the the diameter of the loaded case. It was a naming thing to make it seem bigger than the .36 caliber navy it really is....
I
An interesting side note, the .303 british, and many other rifles that were made outside the US use a .303 diameter bore, and use a .311" diameter bullet, thus, they maintain that .004" groove dimension.