George himself believed that the provision of currency was properly a function of government, and that public debts were an abomination that would be done away with under the reform he proposed. Removing the underlying instabilities caused by tax policy and land speculation will make the economy much less volatile. The 'generation of wealth' is really a process of producing and making available goods and services. If for example we imagine a new factory that produces a good, superficially its income merely arises from the 'redistribution' of already existant wealth from purchasers to producer. Here is a complete rundown of the definitions used in this discussion .
Money is a medium of exchange, and a measure of value.
Now, your question is about how money is created. That depends on what sort of monetary system is in use. In a simple commodity money system like cowrie shells, for example, or gold coins, money is created by taking more of that commodity and diverting it from its use in providing satisfaction to use as a medium of exchange. Money of that sort has intrinsic value, and is itself wealth. The reason for that is simple.