Wallace's presidency was less than one year old when the global economy began to collapse into the Great Depression in the fall of 1929. Almost immediately, funding for University programs was in short supply and Wallace was forced to take action. He was to decide between shutting down existing University departments or cutting staff salaries across the board. Needless to say, Wallace chose the latter action, and no departments at the University were closed despite the desperate economic situation. The financial difficulties did, however, slow the expansion of the University. No new buildings were constructed on the Edmonton Campus until after the Second World War.