The present invention provides a two-wire line conditioning apparatus having an improved calibration and cancellation circuit and provides an improved calibration method using a multitone calibration signal. The apparatus automatically adjusts an electronic hybrid as part of a calibration procedure so as to eliminate undesirable echo effects when calls are placed along the line. The hybrid has capacitors and resistors which can be switched into and out of the circuit by using simple transistor devices. The electronic hybrid balancing process and echo cancellation circuitry may also be utilized in a circuit for converting four-wire communications systems to two-wire communications systems. The line conditioning device of the present invention utilizes a multitone signal to simulate the voice frequency spectrum between approximately 500 Hz and 3500 Hz to probe the line side with a plurality of tones (e.g., 500, 1500 and 3500 Hz; or 500, 1000, 1500, 2000, 2500, 3000, 3500 Hz). The amplitude of the tones are weighted to reflect the transmissibility in the voice band. The value of Z.sub.var considered to be optimal is that value which minimizes the power of the echo of the weighted multitone signal. Embodiments are presented that require intervention by a technician for the calibration procedure, and embodiments that automatically perform calibration using dial tone without manual intervention.