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For by grace you have been saved through faith, and that not of yourselves; it is the gift of God, not of works, lest anyone should boast. For we are His workmanship, created in Christ Jesus for good works, which God prepared beforehand that we should walk in them.

(Most of the following from the Florida School of Preaching 1996 Lectureship: “You Have Heard It Said - But The Bible Says!” pg. 210-228, Robert L. Bauer, additions and changes by myself)
“Man is Saved by Faith Alone”
The doctrine of "salvation by faith alone" was first expressed by Martin Luther in 1517- 1518. He was a Catholic monk who had become disillusioned with the Roman church after visiting Rome and seeing first hand the excesses of the priests. He saw the selling of indulgences by the Roman church as nothing more than salvation by meritorious works. These “indulgences” were documents that could be bought for a sum of money and that would free one from the temporal penalty of sin. It seemed that according to the Roman church forgiveness could not be fully realized until the penitent sinner performed some work here on earth, a pilgrimage, a payment to the church or some meritorious deed. The buying of an indulgence freed one from performing this work. It was believed that Christ and the saints had lived such good lives that they had accumulated a storehouse of good deeds in heaven that the pope could draw upon for those who were alive. This fallacy had progressed to the point that John Tetzel, an agent of the pope, was selling these "merits" of the saints to raise money for St. Peter's basilica in Rome with the promise of a short stay in purgatory for the purchasers.  
Luther realized that this practice violated the Scriptures and sought to correct the sinful practice. However, as it so often happens with men, Luther, in his quest for truth, swung to the opposite extreme and proclaimed that salvation was by faith alone. He wrote in the Augsburg Confession:
They [the Scriptures] teach that men cannot be justified in the sight of Clod by their own strength, merits, or works, but that they are justified freely on account of Christ through faith, when they believe that their sins are remitted on behalf of Christ, who made satisfaction for sins on our behalf by his death.
It would have been pointless to tell me that the word "alone" is not found in the Latin or Greek texts here, for I was well aware of it ... But the word has to be added if the sense of the passage is to be expressed clearly...
Acts 11:18 (KJV) When they heard these things, they held their peace, and glorified God, saying, Then hath God also to the Gentiles granted repentance unto life.
Acts 2:38 (KJV) Repent, and be baptized every one of you in the name of Jesus Christ for the remission of sins, and ye shall receive the gift of the Holy Ghost. 
 to denote purpose in order to1 1 William Arndt et al., A Greek-English Lexicon of the New Testament and Other Early Christian Literature (Chicago: University of Chicago Press, 2000), 290.
for forgiveness of sins, so that sins might be forgiven1 1 William Arndt et al., A Greek-English Lexicon of the New Testament and Other Early Christian Literature (Chicago: University of Chicago Press, 2000), 290.
Regeneration in Christ changes the whole disposition from lawless, Godless self seeking which dominates man in Adam into one of trust and love, of repentance for past rebelliousness and unbelief, and loving compliance with God's law henceforth. It enlightens the blinded mind to discern spiritual realities, and liberates and energizes the enslaved will for free obedience to God.
In the N.T. the subject chiefly has reference to repentance from sin, and this change of mind involves both a turning from sin and a turning to God
Election is a gracious choice. Election "by grace" is an act of undeserved favour freely shown towards members of a fallen race to which God owed nothing but wrath.
Total hereditary depravity
Unconditional election
Limited atonement
Irresistible grace
Perseverance of the saints
As God hath appointed the elect unto glory, so hath He, by the eternal and most free purpose of His will, foreordained all the means thereunto. Wherefore, they who are elected being fallen in Adam, are redeemed in Christ; are effectually called unto faith in Christ by His Spirit working in due season; are justified, adopted, sanctified, and kept in His power through faith unto salvation. Neither are any other redeemed by Christ, effectually called, justified, adopted, sanctified, and saved, but the elect only.
We are accounted righteous before God only for the merit of our Lord and Saviour Jesus Christ, by faith, and not for our own works or deservings. Wherefore, that we are justified by faith only is a most wholesome doctrine, and very full of comfort.
We believe the Scriptures teach that the great gospel blessing which Christ secures lo such as believe in Him is justification: that justification includes the pardon of sin, and the promise of eternal life on principals of righteousness; that is bestowed, not in consideration of any works of righteousness which we have done, but solely through faith in the Redeemer's blood; by virtue of which faith his perfect righteousness is freely imputed to us of God; that it brings us into a state of most blessed peace and favor with God, and secures every other blessing needful for time and eternity.
Even the righteousness of God which is by faith of Jesus Christ unto all and upon all them that believe: for there is no difference: For all have sinned, and come short of the glory of God: Being justified freely by his grace through the redemption that is in Christ Jesus: Whom God hath set forth to be a propitiation through faith in his blood, to declare his righteousness for the remission of sins that are past, through the forbearance of God: To declare, I say, at this time his righteousness: that he might be just, and the justifier of him which believeth in Jesus. Where is boasting then? It is excluded. By what law? of works? Nay: but by the law of faith. Therefore we conclude that a man is justified by faith without the deeds of the law (Rom. 3:22-28)
But to him that worketh not, but believeth on him that justifieth the ungodly, his faith is counted for righteousness. Even as David also describeth the blessedness of the man, unto whom God imputeth righteousness without works, Saying, Blessed are they whose iniquities are forgiven, and whose sins are covered. Blessed is the man to whom the Lord will not impute sin. (Romans 4:5-8)
Knowing that a man is not justified by the works of the law, but by the faith of Jesus Christ, even we have believed in Jesus Christ, that we might be justified by the faith of Christ, and not by the works of the law: for by the works of the law shall no flesh be justified. (Galatians 2:16)
For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men, who suppress the truth in unrighteousness, because what may be known of God is manifest in them, for God has shown it to them. (Romans 1:18-19)
And do you think this, O man, you who judge those practicing such things, and doing the same, that you will escape the judgment of God? (Romans 2:3)
Therefore by the deeds of the law no flesh will be justified in His sight, for by the law is the knowledge of sin. (Romans 3:20)
For I am not ashamed of the gospel of Christ, for it is the power of God to salvation for everyone who believes, for the Jew first and also for the Greek. For in it the righteousness of God is revealed from faith to faith; as it is written, “The just shall live by faith.” (Romans 1:16-17)
just as David also describes the blessedness of the man to whom God imputes righteousness apart from works: “Blessed are those whose lawless deeds are forgiven, And whose sins are covered; Blessed is the man to whom the LORD shall not impute sin.” (Romans 4:6-8)
Brethren, I speak in the manner of men: Though it is only a man’s covenant, yet if it is confirmed, no one annuls or adds to it. Now to Abraham and his Seed were the promises made. He does not say, “And to seeds,” as of many, but as of one, “And to your Seed,” who is Christ. And this I say, that the law, which was four hundred and thirty years later, cannot annul the covenant that was confirmed before by God in Christ, that it should make the promise of no effect. For if the inheritance is of the law, it is no longer of promise; but God gave it to Abraham by promise.
Truth is "any conception which coincides with fact," and may always be ascertained by a careful collation of all the facts touching the matter, with correct conclusions drawn therefrom. Harmony is the essence of truth, and is the final test of every hypothesis. Does the conclusion reached coincide with known truth? If yes, the conclusion is irresistible; if no, it is demonstrably false, however plausible it may first appear.
Luther also added "alone" to the German translation of Romans 3:28, "Therefore we conclude that a man is justified by faith without the deeds of the law." In defense of his translation, though the text did not support: it, he insisted,  
A Downward Spiral
If salvation comes by believing or accepting Christ, then how does Luke 13:3 fit into the picture? “I tell you, no; but unless you repent you will all likewise perish.” Can a person really be saved without following the command of our Savior? Can salvation come before repentance? If it does then there logically could be saved people who are continuing in their sins. The Bible, however, plainly teaches that repentance precedes salvation. Consider the response and statement of the brethren at Jerusalem when they heard Peter's explanation of the conversion of Cornelius and his household,  
Repentance is “unto” life therefore it must be before salvation or justification. This would harmonize with Acts 2:38 where Peter told the Jews gathered in Jerusalem on the first Pentecost after the resurrection of Christ,
Repentance is shown once more to come before the remission of sins, or salvation. In both cases the Greek prepositions “eis” is used which BDAG defines as,
To overcome this problem the doctrine of regeneration was developed in order to place repentance in its proper position which is before salvation.  Regeneration, according to its proponents, is "a radical change, which revolutionizes our whole being, contradicts and overcomes our old fallen nature." It is “a new life-power of Divine origin which enables the component parts of human nature to fulfill the law of God, to strive for the coming of God's kingdom, and to accept the teachings of God's spirit.” The Elwell Evangelical Dictionary says of it,  
Unger writes that this spiritual change is wrought in man by the Holy Spirit. Thus to the "faith only" crowd regeneration is a change of mind ("radical change, change of disposition") which brings about a change of action ("loving compliance with God's law, liberates and energizes the enslaved will for free obedience to God"). It is, to them, the new birth of John 3:3-5. Read what Vine says about μετανοέω, the Greek word for repentance, 
This alleviates their problem of salvation before repentance. 
Who Receives This Regeneration?
Whom does God, through the Holy Spirit, "enlighten to discern spiritual realities" and thus come to accept all that is entailed in Jesus Christ? Is it all men? If so why does the Bible plainly teach that some did not come to repentance and some did not accept Christ. (Acts 13:44-46; Acts 24:25; Acts 26: 28)?
Since God has supposedly chosen to not regenerate everyone, He must only choose to regenerate certain ones. In order to overcome this massive flaw in their doctrine, the idea of divine election was developed and The New Bible Dictionary defines it as,
God therefore chooses, according to the doctrine of divine election, who will be enlightened in order to repent so that they may believe in all that encompasses Christ and be saved. This salvation, because it is totally from God, can never be lost. This created another problem.
 If only the elect were regenerated and came to faith and salvation, then Christ could not have died for all men but only for the chosen. Consequently the doctrine of limited atonement was developed. Limited atonement is the teaching that Christ died only For the elect. This may seem well and good and might comfort those that believe they are one of the elect but what about those that are not among the elect? Is there no hope for them? 
If God chooses the elect, and if this choice can never be altered, then those that are not chosen are eternally condemned. The question is why? This created another problem for the advocates of Martin Luther’s “Faith Only”.
The answer to (yet again) this problem that “faith only” created was total hereditary depravity. According to this doctrine, we are born with the sin of Adam upon us and because of our sinful nature we deserve eternal damnation. The New International Version champions this idea of man's sinful nature in Romans 8:8; 8: 12; Galatians 5: 16; 5: 19; Colossians 2:11; 2: 13. We can clearly see the promotion of it in Psalm 51:s. The King James Version reads, "Behold, I was shapen in iniquity; and in sin did my mother conceive me." The New International Version reads, "Surely I have been a sinner from birth, sinful from the time my mother conceived me." Accordingly to those who profess a faith only salvation, man is born in sin and continues in sin then he deserves condemnation (Rom. 6:23). It is only because God is loving and gracious that He chooses Lo save any of us, for we all deserve death.
We can easily see that Luther's faith only belief has evolved into the T.U.L.I.P. doctrine of John Calvin:
Embraced By Denominational World
Most major "Christian" religious groups hold to some form of this faith only, T.U.L.I.P., belief. The Westminister Confession of Faith (Presbyterian churches) states,
The Methodist Book of Discipline reads,
The Hiscox Standard Baptist Manual states,
Scriptural Justification Of Faith Only Position?
What Scriptures are used to justify the "faith only" position? They rely heavily upon Paul's letters to the church at Rome and Galatia. Romans 3:22, 24-25, 27-28 are quoted:
Also, Romans 4:5-8 is quoted as a proof text:
Galatians 2:16 reads as follows:
Exegesis Of Romans 1:18-4:8
The question is, do these passages teach what those who believe we are saved by faith alone say they do? In Romans 1:18-32 God reveals through the apostle Paul that the Gentiles were lost and in need of salvation.
God, because He is just, extends His wrath against all ungodliness and unrighteousness. T h o s e w h o m He was writing about had not glorified God (v. 2 I), had worshiped idols (v. 23), committed homosexual acts (vs. 26-27), given themselves over to other various sins (vs. 29-31), and did not care what the consequences were (v. 32). Thus they were lost and in dire need of salvation
In chapter two Paul turns his attention to the Jews (v. 17). In verse one he says they have no excuse because they do the same things as the Gentiles. He asks them, 
He tells them they are bringing wrath upon themselves (Rom. 2:5). He goes on to say that God will "render to every man according to his deeds" (Rom. 2:6); eternal life to those "who by patient continuance in well doing seek for glory and honour and immortality" (Rom. 2:7) and tribulation and anguish on "those who are self-seeking and do not obey the truth" (Rom. 2:8). This is the same for everyone it does not matter if you are Jew or Gentile. God shows no partiality (Rom. 2:9-10). In verses twelve through sixteen Paul states that all will be judged by the law they are under. The Gentiles had disobeyed divine law, "...for where no law is, there is no transgression" (Rom. 4: 15). The Jews had disobeyed the divine law that was given through Moses. They boasted because they were Jews and because God had given them the law, but they did not keep it. They looked at themselves as a light to the world when they were in darkness themselves and because of their actions God was being blasphemed (Rom. 3: 17-24). In verses twenty-five through twenty-nine Paul reveals the true Jew is one who has been circumcised in the heart, not just outwardly. It is a spiritual circumcision not a physical one. This would harmonize with Paul's statement in Romans 9:6, "For they are not all Israel, which are of Israel."
Beginning in chapter three Paul points out the judgment of God is always true and just. If God failed to bless Israel because of their sins, does that make Him a liar because He promised to bless them? If God chose to reveal His righteousness through the gospel and provide an escape from condemnation does that make him unjust when He does execute His wrath and judges the world? Paul asks, "Is God unrighteous who taketh vengeance?" (Rom. 3:5), He answers, "God forbid" (Rom. 3:6). In verses nine through twenty Paul reveals that none have kept their law perfectly, neither Jew nor Gentile, "There is none righteous, no, not one" (Rom. 3: 10). He concludes,
Why would no flesh be justified by the law? Because none have kept it perfectly! The Law taught us what God expects and failure to do what He expects is sin, therefore we learn of sin through law.
Beginning in verse twenty-one Paul stales that "now the righteousness of God without the law is manifested, being witnessed by the law and the prophets." What is now being revealed, "the righteousness of God." What is that? In Romans 1:16-17 Paul writes, 
Where is the righteousness of God revealed, in the gospel of Jesus? What is the gospel, God's plan for making man right with Him? Therefore, justification by God comes apart from law for none have kept the law perfectly (Rom. 3:23). Justification: comes through the gospel of Jesus Christ. What is entailed in the gospel, all that Jesus is, all that He did, all that He taught. To be saved one must believe in Christ, all that He is, all that He did, and all that He taught. Why was this plan for making man right with God given? It was not because of our merits, for neither Jew nor Gentile kept their respective laws perfectly, it was given freely by the grace of God (Rom. 3:24). He was able to extend His grace and still be a just God because He paid the wages of our sins Himself (Rom. 6:23). Thus, He was and is "just and the justifier of the one who believeth in Christ" (Rom. 3:26). It is interesting, in his letter to Titus, Paul refers to Christ as the "grace of God that bringeth salvation" (Titus 3: 11).
Paul concludes his argument, "Where is boasting then?" (Rom. 3:27). There was and is no room for boasting for none kept and keep the laws of God perfectly. None have earned or merited salvation (Rom. 3: 10, 23). Therefore, because none earn salvation, there must be a way apart or separate from works. There is, faith in our Lord and Saviour Jesus Christ and all that He represents (Rom. 3:28). This salvation is extended to all mankind, both Jew and Gentile. Paul concludes that this justification by faith does not void law but establish it. Why? It accomplished the purpose God had planned for it. Law enabled man to know what sin is (Rom. 7:1 ) and it pointed man towards Christ (Gal. 3:24) in whom man could be made right with God (Eph. 2: 16).
In chapter 4 Paul points out that Abraham was justified by faith also. We must remember that Paul is addressing the Jews ("Abraham, our father"). If Abraham had kept law perfectly he could boast, but he was "counted for righteousness" (Rom. 4:3) because of his faith. It is interesting to note that when God declared this in Genesis 15:6 Abraham had already served the Lord faithfully for many years. God was not talking to a lawless sinner but to a faithful servant. James uses the same verse to show that Abraham was justified by works and not by faith only. The only conclusion we can make is that Paul and James were talking about two different types of works. Paul was speaking about works of merit and James about works of obedience. Paul goes on to say, "Now to him that worketh is the reward not reckoned of grace, but of debt" (Rom. 4:4). If one kept the law perfectly one would have earned salvation as one earns wages. Since none kept the law perfectly, justification comes through faith in the justifier, Jesus Christ. Paul goes on to write, 
If David is speaking here of complete forgiveness he is looking ahead to Christ. Hebrews 10:4 states that the blood of bulls and goats did not take away sin and Hebrews 9:15 reveals that the blood of Christ covered those under the first covenant. Complete, true forgiveness of sins is available only through Christ. 
What is Paul telling us in these first few chapters of Romans? Salvation will not be had exclusively through the works of law because none have kept law perfectly. We do not earn salvation, like a wage. It comes through Jesus Christ in whom we must believe. He is the way, the truth, and the life (John 14:6). 
Paul Uses The Same Argument In Galatians 
In Galatians 2:13 the argument is essentially the same. Some were trying to return to the old covenant and Paul tells them the law will justify no one. This is because none have kept it perfectly. We must look to Christ for justification. Paul further defends his argument in Galatians 3:15-18.
The promise given to Abraham was not through the law, but through Christ.
What Does Save Us?
The passages quoted by those that profess a Faith only salvation do not teach what they claim they teach. Salvation can only be had if one believes in Christ, but that does not necessarily mean that is all that is necessary. Brother Guy N. Woods wrote, 
Separate and apart from the conclusions of man, what does the Bible say about what is necessary for salvation?
Acts 2:21 (NKJV) And it shall come to pass That whoever calls on the name of the LORD Shall be saved.’
John 3:16 (NKJV) For God so loved the world that He gave His only begotten Son, that whoever believes in Him should not perish but have everlasting life.
Romans 5:10 (NKJV) For if when we were enemies we were reconciled to God through the death of His Son, much more, having been reconciled, we shall be saved by His life.
Romans 10:9–10 (NKJV) 9 that if you confess with your mouth the Lord Jesus and believe in your heart that God has raised Him from the dead, you will be saved. 10 For with the heart one believes unto righteousness, and with the mouth confession is made unto salvation.
1 Corinthians 15:1–2 (NKJV) 1 Moreover, brethren, I declare to you the gospel which I preached to you, which also you received and in which you stand, 2 by which also you are saved, if you hold fast that word which I preached to you—unless you believed in vain.
2 Thessalonians 2:10 (NKJV) and with all unrighteous deception among those who perish, because they did not receive the love of the truth, that they might be saved.
Ephesians 2:8–9 (NKJV) 8 For by grace you have been saved through faith, and that not of yourselves; it is the gift of God,  9 not of works, lest anyone should boast.
Acts 17:30 (NKJV) Truly, these times of ignorance God overlooked, but now commands all men everywhere to repent,
1 Peter 3:21 (NKJV) There is also an antitype which now saves us—baptism (not the removal of the filth of the flesh, but the answer of a good conscience toward God), through the resurrection of Jesus Christ
Acts 2:40 (NKJV) And with many other words he testified and exhorted them, saying, “Be saved from this perverse generation.”
Philippians 2:12 (NKJV) Therefore, my beloved, as you have always obeyed, not as in my presence only, but now much more in my absence, work out your own salvation with fear and trembling;
Ephesians 1:7 (NKJV) In Him we have redemption through His blood, the forgiveness of sins, according to the riches of His grace
Romans 5:9 (NKJV) Much more then, having now been justified by His blood, we shall be saved from wrath through Him.
Hebrews 5:8–9 (NKJV) 8 though He was a Son, yet He learned obedience by the things which He suffered. 9 And having been perfected, He became the author of eternal salvation to all who obey Him
James 2:24 (NKJV) You see then that a man is justified by works, and not by faith only.
Conclusion
Salvation cannot be had by faith alone any more than it can be had by repentance alone, or baptism alone, or grace alone, or the blood of Christ alone. Salvation can be ours only by a combination of all the above and the invitation is extended to "whosoever will" (Rev. 22:17). As the Psalmist penned, "The sum of thy word is truth; And every one of thy righteous ordinances endureth for ever" (Psalm 119:160, ASV). As brother Woods wrote, ''Harmony is of the essence of truth, and is the final test of every hypothesis." Salvation by "faith only" does not harmonize with the rest of the Bible's teaching on salvation and its proponents are only deceiving themselves and their followers. They have based their hope upon a false premise. 
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