Dr. R. C. Sproul in an article entitled Faith and Works writes the following:
If justification is by faith alone, how can we apply James 2:24, which says a person is justified by what he does, not his faith alone?
That question is not critical only today, but it was in the eye of the storm we call the Protestant Reformation that swept through and divided the Christian church in the sixteenth century. Martin Luther declared his position: Justification is by faith alone, our works add nothing to our justification whatsoever, and we have no merit to offer God that in any way enhances our justification. This created the worst schism in the history of Christendom.
In refusing to accept Luther’s view, the Roman Catholic Church excommunicated him, then responded to the outbreak of the Protestant movement with a major church council, the Council of Trent, which was part of the so-called Counter-Reformation and took place in the middle of the sixteenth century. The sixth session of Trent, at which the canons and decrees on justification and faith were spelled out, specifically appealed to James 2:24 to rebuke the Protestants who said that they were justified by faith alone: “You see that a person is justified by what he does and not by faith alone.” How could James say it any more clearly? It would seem that that text would blow Luther out of the water forever.
Of course, Martin Luther was very much aware that this verse was in the book of James. Luther was reading Romans, where Paul makes it very clear that it’s not through the works of the law that any man is justified and that we are justified by faith and only through faith. What do we have here? Some scholars say we have an irreconcilable conflict between Paul and James, that James was written after Paul, and James tried to correct Paul. Others say that Paul wrote Romans after James and he was trying to correct James.
I’m convinced that we don’t really have a conflict here. What James is saying is this: If a person says he has faith, but he gives no outward evidence of that faith through righteous works, his faith will not justify him. Martin Luther, John Calvin, or John Knox would absolutely agree with James. We are not saved by a profession of faith or by a claim to faith. That faith has to be genuine before the merit of Christ will be imputed to anybody. You can’t just say you have faith. True faith will absolutely and necessarily yield the fruits of obedience and the works of righteousness. Luther was saying that those works don’t add to that person’s justification at the judgment seat of God. But they do justify his claim to faith before the eyes of man. James is saying, not that a man is justified before God by his works, but that his claim to faith is shown to be genuine as he demonstrates the evidence of that claim of faith through his works.
Further along this line, the following is also a quotation from R. C. Sproul – Knowing Scripture; InterVasity Press, p. 83, 84
“In Romans 3:28 Paul says, “For we maintain that a man is justified by faith apart from works of the Law.” In James 2:24 we read, “You see that a man is justified by works, and not by faith alone.” If the word justify means the same thing in both cases, we have an irreconcilable contradiction between two biblical writers on an issue that concerns our eternal destinies. Luther called “justification by faith” the article upon which the church stands or falls. The meaning of justification and the question of how it takes place is no mere trifle. Yet Paul says it is by faith apart from works, and James says it is by works and not by faith alone.
To make matters more difficult, Paul insists in Romans 4 that Abraham is justified when he believes the promise of God before he is circumcised. He has Abraham justified in Genesis 15. James says, “Was not Abraham our father justified by works, when he offered up Isaac his son on the altar?” (James 2:21). James does not have Abraham justified until Genesis 22.
This question of justification is easily resolved if we examine the possible meanings of the term justify and apply them within the context of the respective passages. The term justify may mean (1) to restore to a state of reconciliation with God those who stand under the judgment of his law or (2) to demonstrate or vindicate.
Jesus says for example, “Wisdom is justified of all her children” (Lk 7:35 KJV). What does he mean? Does he mean that wisdom is restored to fellowship with God and saved from his wrath? Obviously not. The plain meaning of his words is that a wise act produces good fruit. The claim to wisdom is vindicated by the result. A wise decision is shown to be wise by its results. Jesus is speaking in practical terms, not theological terms, when he uses the word justified in this way.
How does Paul use the word in Romans 3? Here, there is no dispute. Paul is clearly speaking about justification in the ultimate theological sense.
What about James? If we examine the context of James, we will see that he is dealing with a different question from Paul. James says in 2:14, “What use is it, my brethren, if a man says he has faith, but he has no works? Can that faith save him?” James is raising a question of what kind of faith is necessary for salvation. He is saying that true faith brings forth works. A faith without works he calls a dead faith, a faith that is not genuine. The point is that people can say they have faith when in fact they have no faith. The claim to faith is vindicated or justified when it is manifested by the fruit of faith, namely works. Abraham is justified or vindicated in our sight by his fruit. In a sense, Abraham’s claim to justification is justified by his works. The Reformers understood that when they stated the formula, “Justification is by faith alone, but not by a faith that is alone.””