This is from his tape set on Calvin’s Institutes. I think it is tape GB449b.
“I think [this] is rather convoluted. Let me very briefly point out, some people will say James can’t mean the word justify in a forensic sense, because then he would contradict Paul. Paul says we are justified by faith, not works. James says we are justified by works. So if they both mean ‘justify’ in the forensic sense, there is a contradiction. Well, I don’t think so, because in Galatians 5:6 Paul teaches exactly what James does. Paul says we are justified by faith working by love. We are justified by working, active, living faith. I think that’s what James is teaching. They mean exactly the same thing. But nevertheless some people have insisted-and this has been a bone of controversy in my denomination even, because a professor at Westminster Seminary insisted James means this in the forensic sense. Now. people who don’t like that say, It is to be taken in the demonstrative sense.
The problem is, the demonstrative sense of the word justify means “to show someone to be righteous,” and that doesn’t relieve the contradiction between James and Paul, because Paul in Romans 4 looks at Abraham as an example of how God justifies the ungodly. James is saying, Look at how God justifies someone demonstrated as godly. The contradiction is not relieved. And so what you really get–and this is crucial, this is a crucial point–modern interpreters who don’t like what I am suggesting and what Professor Shepherd is suggesting end up saying that to justify in James 2 really means “to demonstrate justification,” not to “demonstrate righteousness.” That is, they make the word to justify mean “to justify the fact that I’m justified.” And the word never means that. That’s utterly contrived. It means either “to declare righteous” or “to demonstrate righteous.” It does not mean “to justify that one’s justified.” Am I making myself clear? I’m suggesting that the reason Paul and James are not contrary to one another is because the only kind of faith that will justify us is working faith, and the only kind of justification ever presented in the Bible after the Fall is a justification by working faith, a faith that receives its merit from God and proceeds to work as a regenerated, new person.
I think, as David Bahnsen makes clear, Greg was a defender of Norman Shepherd. The Morecraft-types simply can’t get around that. From Greg’s other writings and debate with Catholics, he held to the imputation of Christ’s active obedience, something Shepherd was more reluctant to do. I lean towards Bahnsen. I agree with Shepherd on covenant and election. Still working my head around his thoughts on justification.