And Hope of Salvation

Luther:
No. James is making the point that one cannot substitute credulity for faith. True christian faith yeilds love and works.

You just proved the Catholic doctrine. Faith and works go together. Faith alone is dead.

Here is John Wesley to explain:
John Wesley
But here let no man deceive his own soul. "It is diligently to be
noted, the faith which bringeth not forth repentance, and love, and all
good works, is not that right living faith, but a dead and devilish one.

The Catholic doctrine of faith and works is again proved correct.

For, even the devils believe that Christ was born of a virgin: that he
wrought all kinds of miracles, declaring himself very God: that, for
our sakes, he suffered a most painful death, to redeem us from death
everlasting; that he rose again the third day: that he ascended into
heaven, and sitteth at the right hand of the Father and at the end of
the world shall come again to judge both the quick and dead. These
articles of our faith the devils believe, and so they believe all that
is written in the Old and New Testament. And yet for all this
faith, they be but devils. They remain still in their damnable estate
lacking the very true Christian faith."

Still more proof that the Catholic doctrine is correct and that the doctrine of faith alone is a devilish formula.

"The right and true Christian faith is" (to go on m the words of our
own Church), "not only to believe that Holy Scripture and the Articles
of our Faith are true, but also to have a sure trust and confidence
to be saved from everlasting damnation by Christ. It is a sure trust
and confidence which a man hath in God, that, by the merits
of Christ, his sins are forgiven, and he reconciled to the favour
of God; whereof doth follow a loving heart, to obey his commandments."

In short, have faith in Christ and obey His Commandments. Again the Catholic formula reiterated.

Notice that the desire to follow Gods commandments is not from fear of punishment or hope of reward but from love alone. 

And Hope of Salvation:

Colossians 1:27 To whom God would make known what is the riches of the glory of this mystery among the Gentiles; which is Christ in you, the hope of glory: 

The theory of Indulgences had no place in his theology, as it is plain hypocracy.

I guess Jesus didn't know about that:

Matthew 19:21
King James Version (KJV)²¹ Jesus said unto him, If thou wilt be perfect, go and sell that thou hast, and give to the poor, and thou shalt have treasure in heaven: and come and follow me.