Smith "created capitalism"? Per Wikipedia (http://en.wikipedia.org/wiki/Capitalism): "The term capitalism, in its modern sense, comes from the writings of Karl Marx." You may want to read its section "Etymology and early usage" for more perspective. Then look up Adam Smith and "The Wealth of Nations".

One needn't coin the term to have created something.

Marx came after Smith - Marx's writings were in response to capitalism. Smith's writings were in response to mercantilism/cronyism/protectionism/imperialism.