The 21-year-old winger's two brilliant second-half goals gave his team their fifth successive home win, piling the pressure on Oldham boss Paul Dickov.
The Latics have now picked up only one point from nine league games and fielded three new players since their heroic FA Cup win over Liverpool last week, but still fell short.
Smith, who insisted Dickov would turn things round if given the chance, was asked if he had been surprised to receive no offer for Paterson - now on nine goals - before the transfer deadline.
He replied: "There has been a lot of speculation but I did not have a phone call. Jamie has a bright future ahead of him but he is building a platform at this club. He has always been a great finisher.I had him in the youth team when he and George Bowerman both scored 20 goals in a season.
"Give Oldham credit, they came out of the blocks really well and gave us all sorts of problems. Then we showed what we are about, and came back and produced some really good stuff on a tough pitch.
"In the second half we were excellent, really well organised, and did what we wanted to do. Oldham's front two, Lee Barnard and Chris Iwelumo are very good players."