This verse is a clear indication that James didn't believe works saved, for he asks the question, "Can that faith save him?" What he is addressing is the kind of faith that saves. The kind that is merely mental ascent to given data is not soul-saving faith. The kind of faith that saves is that kind that has compelled a person to resign him/herself to the works of God. We are privileged to be included in God's plan to redeem civilization.

He doesn't separate faith and works. They are one. It's not, as many have said, "faith verses works." It's faith that CONTAINS works. Real faith. (Matthew 25 - Sheep and Goats). Saving faith is most clearly discerned by good works. (On the other hand, good works don't always attest to saving faith.)

James 2:14