I believe in believer's baptism. Whenever someone enters the covenant for the first time, through repentance and profession of faith, they must be baptized. Once they enter, the promises of God extend to their children. As such, these children ought to be marked out as belonging to the Lord's through baptism.
Similarly, in the OT, when a Gentile became a follower of YHWH, he had to be circumcised. Once that was done, all of his household (children and slaves), became covenantally united to the Lord. All were members of God's church (Israel), and liable to either blessings or curses.
In the book of Acts, we see a transition stage. The covenant sign had changed from circumcision to baptism, as Col. 2 and Matt. 28 indicate. Thus, all those who profess faith in the book of Acts must be baptized. Yet Peter expresses the continuity of God's dealing with families when he says that "the promise is to you and to your children." He echoes the words of God in Genesis 12 and 17 purposefully.
Peter's testimony is not alone. Paul backs him when he indicates that the children of believer's are "holy." That is, they have been distinguished from the children of unbelievers. They are "set apart to God," and, being so, ought to have the sign that marks them as such.
But prior to the Apostle's, we have the words and deeds of Jesus himself. Jesus recognized the little children (infants) as members of his kingdom when he told his disciples to "Let the babies come to me, and do not forbid them, for such is the kingdom of heaven." He went on to express that this kingdom membership cannot remain solely one of physical birth or parental heritage. True membership must also be accompanied by faith, for "one must become like a little child." In sum, Christ spoke of both the external and internal covenants in virtually the same breath.
This phenomena has a crude parallel in our American citizenship. Upon birth we are acknowledged as members of this nation/state by means of an official birth certificate. We are to be raised to be faithful patriots, and at the proper time we must express our adherence to this kingdom publicly (through voting, for example).
Prior to his ascension to the Father's right hand, Jesus also gave the apostles the charge go and make disciples. How does one "make a disciple?" It is through the dual works of teaching them all that Christ has commanded and assigning to them the name of the Triune God in baptism. Since we still have the command to "impress these things upon our children, talk about them as we lie down and get up and walk along the way," we must recognize these children as disciples through baptism.
Covenant baptism, like it's Old Testament counterpart of circumcision, is a sign and seal to the child. It is the visible manifestation of God's promise "I will be your God, you will be my people." This baptism does not save a child, but it does contain a lively and true promise. So the child always carries with him this reminder and he should recognize that he must respond with faith and obedience all his days.
His greater privilege also implies greater responsibility. If he rebels, he is judged with stricter judgment--for he enjoyed more light and more proximity to God & His blessing.
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