The Orthodox or Anglican practice of rejecting purgatory but retaining prayers for the dead makes more sense.
The rewarding of the good and the punishing of the wicked is not merely a work of Divine Justice, but also an operation of the Divine Mercy, as He rewards beyond merit (Matt. 19:29) and punishes less than merited.
On the other hand, the remission of sin is not merely a work of mercy, but at the same time a work of justice, as God demands from the sinner repentance and atonement. For example, King David sinned against the Lord by murdering Uriah the Hittite because he desired Uriah’s wife, Bathsheba. David repented this sin before the prophet Nathan and God forgave him, but God also demanded the life of David’s son in recompense for scorning the Lord (2 Sam. 12:1-18).
Adam and Eve are an earlier example of the same truth. God pardoned their sin of disobedience but inflicted centuries of the most rigorous hardships. So too were Moses and Aaron pardoned of their sin, which was but a slight transgression of the divine command, yet they were both punished by being deprived of the pleasure of entering the promised land (Num. 20; Deut. 36).
The punishment ordained by God for the sinner is not merely a means of improvement and warning, but is above all retribution for the insult offered to God. We must make some atonement for our ingratitude to God. If this satisfaction to the divine justice is not made in this world, it must be made, even to the “last penny,” in the purifying fires of purgatory. Such has always been the interpretation of those words of Jesus in Luke (and Matt. 5:25): “As you go with your accuser before the magistrate, make an effort to settle with him on the way, lest he drag you to the judge, and the judge hand you over to the officer, and the officer put you in prison. I tell you, you will never get out till you have paid the very last copper” (12:58-59)
All Christians know and admit that Christ’s satisfaction for sin is simply infinite in itself — it is inexhaustible. Moreover, Catholics believe the good works of all the just believers, who are living members of Christ’s body, are the works of Christ Himself, their Divine Head. The Church has consistently and indignantly repudiated and denounced the Protestant doctrine of mere imputed justice. When God pardons the sinner, he does not merely cloak over his corruption with Christ’s merits — as the Reformers held — but he blots out the stain of sin from the soul, beautifies it with his holy grace and enlivens it with his own divine life.
Each soul thus united to Christ may truly say with St. Paul, “It is no longer I who live, but Christ who lives in me” (Gal. 2:20). In such a soul, Christ lives and works. Therefore the good works of the just are not only meritorious of a reward, but they possess an expiatory virtue — that is, they not only deserve a reward proportionate to their value in God’s sight, but also merit the remission of the temporal punishment due to sin.
This last effect of good works — the efficacy in remitting sins committed — may far exceed in value the debt owed to God because of His justice. Of this God alone can judge; He alone can estimate their value. But whatever is not needed by him who performs these good works for the remission of the temporal punishment his own sins deserve, goes to make up — together with the merits of Christ — a common treasury, placed at the Church’s disposal for the benefit of Her needy children.
Hence, when in virtue of an Indulgence the deserved punishment is remitted, God always receives satisfaction — which he claims and which his justice demands. The debt due to Him is paid in full out of the treasury laid up in the Church — the inexhaustible treasury of the merits of Christ and his saints.