Perhaps this passage can bring resolution to that James passage:
For in the gospel the righteousness of God is revealed, both springing from faith and leading to faith [disclosed in a way that awakens more faith]. As it is written and forever remains written, “The just and upright shall live by faith.”
Romans 1:17 AMP (a translation that pulls out the various meaning in context, of Greek and Hebrew)
Something I keep in mind with James is the very first portion of the book, where in 1:2, James addresses the people he's writing to as brothers. This means these are saved people who've already placed faith in Jesus. Given the Romans passage above, it would be very reasonable to understand this faith passage in James as serving faith, born out of saving faith. We need to place faith in Jesus to be saved and we need faith to continue to walk, by the power of the Holy Spirit, in our salvation (but our salvation is never compromised). We are saved by faith in Jesus and as a saved person, we live (walk) by faith in Jesus as He leads us into the works he has for us. All of the Christian's life is to be sourced out of faith, depending on the Holy Spirit (rather than humanly attempting to accomplish God's work for us).
As I understand the bible, any works of a saved person simply reveals the source of those works.....saving faith in Jesus, which leads one in faith to do the works the Lord wishes us to complete in order to earn our crowns (for rewards, not salvation).
2 Corinthians 10:15 seems to point to this:
Nor do we boast and claim credit for the work someone else has done. Instead, we hope that your faith will grow so that the boundaries of our work among you will be extended.
What I glean from this is: it's saving faith growing into serving faith towards the works God has which allows the Gospel (boundaries of our work among you extended) to move further beyond the initially saved church of Corinth. So, this church is encouraged to move from faith to faith.