Wallace was transferred to the Marine Corps Air Station Cherry Point, North Carolina, in September 1947 and took command of Aircraft, Fleet Marine Force, Atlantic. He also served simultaneously as commanding general of 2nd Marine Aircraft Wing based there. On 24 February 1948, Wallace was transferred to the Headquarters Marine Corps in Washington, D.C., to be appointed Director of Marine Corps Aviation. He succeeded Major General Field Harris in this capacity and served there until the beginning of September 1950, when he was relieved by Brigadier General Clayton C. Jerome.
