Born in New Ipswich, New Hampshire, Wallace attended the common schools. He engaged in the manufacture of paper. He was a member of the Board of Selectmen of Fitchburg, Massachusetts, in 1864, 1865, and 1867. He served in the Massachusetts House of Representatives in 1873. He served as member of the Massachusetts Governor's Council from 1880-1882.
Wallace was elected as a Republican to the Fifty-first Congress (March 4, 1889-March 3, 1891). Wallace was not a candidate for renomination in 1890 to the Fifty-second Congress. After serving in congress Wallace returned to the business of manufacturing paper. He died in Fitchburg, Massachusetts, on February 27, 1903. He was interred in Laurel Hill Cemetery.