should be a start cap to get motor direction. without cap installed plug in grinder. flick the switch on briefly. you should hear a hum. thats good. flick it on again and quickly spin the motor either direction doing by hand is okay just need to start moving it in either direction. single phase motors can run either direction without harm. it should start to spin. run caps as far as ive ever known are only for power factor correction for industrial facilities or to give it more torque. if it is indeed a run cap itll have a centifugal switch inside for start windings and run winding after is at full speed.
Many older Baldor grinders were Capacitor Run, which used a small value cap for the secondary winding. Some Baldors employ Cap Start, but most of those used a current sensing relay in lieu of a centrifugal switch. The OP's grinder has a small value cap (3uF) and does not appear to have a relay, so it is most likely a Cap Run model. Here's how they work:
"The capacitor run motor is very useful in this type of application, because the motor can be designed to have low vibration under full-load. The capacitor serves to shift the phase on one of the windings so that the voltage across the winding is at 90° from the other winding, thus making the capacitor run motor a truly two-phase machine at its rated load. Since the capacitor remains in the circuit at all times, no centrifugal switch is required. When running at no-load, the motor is always noisier than at full-load, because only under full load it runs as a true two-phase machine. If the proper value of capacitance is chosen, the currents through each of the two equal stator windings (under full-load) can be made such that the power factor is close to 100%. However, the starting torque is rather low and the capacitor run motor is not recommended for severe starting conditions."