I wonder why the actual reference for this quote is never given? For those who would like to understand what Luther really said and why, I give you:
Then, comes the citation in question: “Yes, we ourselves find it difficult to refute it, especially since we concede—as we must—that so much of what they say is true: that the papacy has God’s Word and the office of the apostles, and that we have received Holy Scripture, Baptism, the Sacrament, and the pulpit from them. What would we know of these if it were not for them? Therefore faith, the Christian Church, Christ, and the Holy Spirit must also be found among them. What business have I, then, to preach against them as a pupil preaching against his teachers? Then there come rushing into my heart thoughts like these: “Now I see that I am in error. Oh, if only I had never started this and had never preached a word! For who dares oppose the church, of which we confess in the Creed: I believe in a holy Christian Church, etc.? Now I find this church in the papacy too. It follows, therefore, that if I condemn this church, I am excommunicated, rejected, and damned by God and all the saints.” [LW 24:304].
Is Luther conceding an infallible church gave us the canon? Absolutely not. Is Luther saying an infallible extra-biblical tradition produced the Canon? Absolutely Not. Luther is simply saying that he learned about the Scriptures, Baptism, and the Pulpit, etc. from the Church of his day, in the same way the Prophets were born into a society in which the religious structure of their day was functioning, and gave the Old Testament people a religious context to live in. The visible church indeed promulgated the Scriptures and Christian doctrine. Who can deny this? But simply because they did so, does not mean the visible church in Rome infallibly declared the canon of Scripture.
Luther held that the Church was God's hand maid and servant. It does not create God's Word, God's Word creates the Church. As the servant of the Word, it gives the Word to the body of Christ, His people. Indeed, who would know God's Word if it were not for the Church continually upholding it and pointing God's people to it in each generation? One should be able to sense the thrust of Luther's argument: when the visible Church goes bad, going against it is an awesome and fearful undertaking. The Church is God's handmaid. It is to protect and promulgate the Word- but what happens when the servant disobeys the Master? Who can condemn the handmaid and not be fearful?
The quote as cited by Roman Catholics has nothing to do with an infallible Church declaring the contents of Scripture. The quote isn't discussing canonicity. The quote isn't discussing if Rome gave us an infallible list of biblical books. Rather, the quote is part of an argument based on Old Testament Israel persecuting God’s true people, and the Roman Catholic Church persecuting the Reformers. This is made clear as Luther continues. Old Testament Judaism had God's law. does this mean they were the ones who infallibly declared what that law was?
“But what is now our defense? And what is the ground on which we can hold our own against such offense and continue to defy those people? It is nothing else than the masterly statement St. Paul employs in Rom. 9:7: “Not all are children of Abraham because they are his descendants.” Not all who bear the name are Israelites; or, as the saying goes: “Not all who carry long knives are cooks.” Thus not all who lay claim to the title “church” are the church. There is often a great difference between the name and the reality. The name is general. All are called God’s people, children of Abraham, Christ’s disciples and members; but this does not mean that they all are what the name signifies. For the name “church” includes many scoundrels and rascals who refused to obey God’s Word and acted contrary to it. Yet they were called heirs and successors of the holy patriarchs, priests, and prophets. To be sure, they had God’s Law and promise, the temple, and the priesthood. In fact, they should have been God’s people; but they practiced idolatry so freely under the cloak of the name “church” that God was forced to say: “This shall no longer be My temple and priesthood. My people shall no longer be My people. But to those who are not My people it shall be said: ‘You are sons of the living God’ ” (Hos. 1:10; 2:23).” [LW 24:304].
Luther realizes that even within the corrupt papacy, the true church exists:
“Thus we are also compelled to say: “I believe and am sure that the Christian Church has remained even in the papacy. On the other hand, I know that most of the papists are not the Christian Church, even though they give everyone the impression that they are. Today our popes, cardinals, and bishops are not God’s apostles and bishops; they are the devil’s. And their people are not God’s people; they are the devil’s. And yet some of the papists are true Christians, even though they, too, have been led astray, as Christ foretold in Matt. 24:24. But by the grace of God and with His help they have been preserved in a wonderful manner.” [LW 24:305].
“In the meantime we adhere to the distinction made here by Christ and do not regard as Christendom those who do not hold truly and absolutely to what Christ taught, gave, and ordained, no matter how great, holy, and learned they may be. We tell them that they are the devil’s church. On the other hand, we want to acknowledge and honor as the true bride of Christ those who remain faithful to His pure Word and have no other comfort for their hearts than this Savior, whom they have received and confessed in Baptism and in whose name they have partaken of the Sacrament. These are the true church. It is not found in only one place, as, for example, under the pope; but it exists over the entire earth wherever Christians are found. Outwardly they may be scattered here and there, but they meet in the words of the Creed: “I believe in God the Father Almighty, and in Jesus Christ, our Lord, who was born, suffered, and died for us on the cross.” In like manner, they pray: “Our Father who art in heaven.” They share the same Spirit, Word, and Sacrament. They all lead the same holy and blessed life, each one according to his calling, whether father, mother, master, servant, etc. Thus whatever we preach, believe, and live, this they all preach, believe, and live. Physically separated and scattered here and there throughout the wide world, we are nevertheless gathered and united in Christ.”[LW 24:309].
From these paragraphs, it should be obvious what Luther is driving at. It is the job of the True Church- those who believe and trust only in Christ's righteousness by faith, to call the visible church to repentance. The visible church will claim to be God speaking. The visible church may claim to be that authority which determined the Canon. But if the visible church is in rebellion against God, it is the task of the true Christian to point her back to her master. (http://beggarsallreformation.blogspot.com/search?q=We+are+compelled+to+concede+to+the+Papists)
