He was born on 10 June 1891 at Alton, Ontario, the son of James and Rachel Algie who resided at 1155 King Street, Toronto, Ontario, Canada. Wallace was brought up by his parents in the Presbyterian faith. He graduated from the Royal Military College of Canada. Prior to April 1916 he served as a lieutenant for 2 months in The Queen’s Own Rifles of Canada and 4 months in the 40th Regiment. On 19 April 1916, Wallace signed an Officers’ Declaration Paper to serve in the Canadian Over-seas Expeditionary Force.   Algie was awarded the Victoria Cross for his actions on 11 October 1918 north east of Cambrai, France, which also led to his death. At the time of his action, Algie was a 27-year-old lieutenant in the 20th Battalion, Canadian Expeditionary Force during the First World War. Lieutenant Algie was with attacking troops who came under heavy enfilade machine-gun fire from a neighbouring village.

For most conspicuous bravery and self-sacrifice on the 11th October, 1918, north-east of Cambrai, when with attacking troops which came under heavy enfilade machine-gun fire from a neighbouring village. Rushing forward with nine volunteers, he shot the crew of an enemy machine gun, and, turning it on the enemy, enabled his party to reach the village. He then rushed another machine gun, killed the crew. captured an officer and 10 enemy, and thereby cleared the end of the village. Lt. Algie, having established his party, went back for reinforcements, but was killed when leading them forward. His valour and personal initiative in the face of intense fire saved many lives and enabled the position to be held.