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This James appears as James I. Kanouse in a Knauss family descendancy chart prepared by John A. Knouse:
James was a son of John Kanouse, b. 14 Aug 1836,and Sarah Favour, b. Aug 1840. Although I haven't researched this family myself, I corresponded many years ago with someone who had, and I recall that he mentioned a published history of Decatur County, Indiana contains a biographical sketch of John Kanouse of that county. Presumably this sketch would be of James' grandfather John Kanouse, who was born 23 May 1801 in PA and died 31 March 1874 in Adams, Decatur County, Indiana. He and his first wife, Christina Miller, are the ancestors of many of the Kanouses of Decatur County and vicinity.