Edit: he did the right thing in removing a baptized Catholic from a Jewish household, where he could be raised in the faith and given a good education. There's a lot of controversy in some Catholic circles over this issue, and we can only say that they must be hiding their Catholic principles for fear of the Jews.
It was Pius' duty to take care of his people, especially a lost sheep whom he raised. And of course, there is no salvation outside of the Catholic Church.