Julian, as I recall, we dealt with this issue before on this list.
The question before, as I recall, was not what Smith actually said
but how what he said should be interpreted by economists today. The
fact that a prominent economist misquotes Smith is, it seems to me, a
much less important issue than the question of correct meaning.
Regarding your comment on Gavin Kennedy, capital is a pretty
important concept in Smith's vision, isn't it? What more important
"item," in the classical view, is involved in a businessperson's
pursuit of profit?
Pat Gunning