This patent describes a technique for generating digital pulse signals that represent analog multifrequency tone pairs used in telephone signaling systems. The technique involves storing compressed pulse amplitude modulated samples of each tone pair frequency combination in a non-destructive readout memory. When a tone pair needs to be transmitted, the corresponding block of samples is read out cyclically from the memory. The samples are encoded and transmitted as pulse code modulated signals, which can then be decoded back into analog signals by conventional receivers. Storing pre-encoded samples reduces the amount of hardware needed compared to directly generating and encoding analog tone pairs. The technique allows digital tone generation for use in pulse code modulated transmission systems.