Language is a system that consists of the development, acquisition, maintenance and use of complex systems of communication, particularly the human ability to do so; and a language is any specific example of such a system.
Literature, most generically, is any body of written works. More restrictively, literature writing is considered to be an art form, or any single writing deemed to have artistic or intellectual value, often due to deploying language in ways that differ from ordinary usage.
A beautiful literature springs from the depth and fullness of intellectual and moral life, from an energy of thought and feeling, to which nothing, as we believe, ministers so largely as enlightened religion.
Evolution teaches us the original purpose of language was to ritualize men's threats and curses, his spells to compel the gods; communication came later.
Gene Wolfe, "The Death of Doctor Island", Universe 3 (1973), ed. Terry Carr; reprinted in The Best of Gene Wolfe (2009).