dal11,
I think you are reading more into the words of Amazing Grace than are there, whatever the author may have believed. We are saved by grace. Maybe he had lost his childhood faith and came back to faith by grace. I know plently of Catholics who have done that. And the song speaks of grace carrying him through many " dangers, toils and snares" which does not exclude those before his conversion. It is all grace. Catholics believe we are saved by grace. We talk about grace all the time, especially in relationship to the sacraments. Grace allows us to do good works.The baptismal grace of faith recived by infants in baptism is based on their parent’s faith and must grow and be confirmed in the child as the child grows.We also believe in the grace of perseverance.
Faith and Baptism - from The Catechism
1253 Baptism is the sacrament of faith. But faith needs the community of believers. It is only within the faith of the Church that each of the faithful can believe. The faith required for Baptism is not a perfect and mature faith, but a beginning that is called to develop. The catechumen or the godparent is asked: “What do you ask of God’s Church?” The response is: “Faith!”
1254 For all the baptized, children or adults, faith must grow after Baptism. For this reason the Church celebrates each year at the Easter Vigil the renewal of baptismal promises. Preparation for Baptism leads only to the threshold of new life. Baptism is the source of that new life in Christ from which the entire Christian life springs forth.
1255 For the grace of Baptism to unfold, the parents’ help is important. So too is the role of the godfather and godmother, who must be firm believers, able and ready to help the newly baptized - child or adult on the road of Christian life. Their task is a truly ecclesial function (officium). The whole ecclesial community bears some responsibility for the development and safeguarding of the grace given at Baptism.
1821 We can therefore hope in the glory of heaven promised by God to those who love him and do his will. In every circumstance, each one of us should hope, with the grace of God, to persevere “to the end” and to obtain the joy of heaven, as God’s eternal reward for the good works accomplished with the grace of Christ. In hope, the Church prays for “all men to be saved.” She longs to be united with Christ, her Bridegroom, in the glory of heaven:
2016 The children of our holy mother the Church rightly hope for the grace of final perseverance and the recompense of God their Father for the good works accomplished with his grace in communion with Jesus. Keeping the same rule of life, believers share the “blessed hope” of those whom the divine mercy gathers into the “holy city, the new Jerusalem, coming down out of heaven from God, prepared as a bride adorned for her husband.”
1128 This is the meaning of the Church’s affirmation49 that the sacraments act ex opere operato (literally: “by the very fact of the action’s being performed”), i.e., by virtue of the saving work of Christ, accomplished once for all. It follows that “the sacrament is not wrought by the righteousness of either the celebrant or the recipient, but by the power of God.” From the moment that a sacrament is celebrated in accordance with the intention of the Church, the power of Christ and his Spirit acts in and through it, independently of the personal holiness of the minister. Nevertheless, the fruits of the sacraments also depend on the disposition of the one who receives them. "
scborromeo.org/ccc/ccc_toc2.htm