It was running parallel with payment notes from the Clearing House of Tallinn as there was lack of cash in Estonia.

On 11 November 1918 the Estonian Provisional Government assembled after the Armistice to discuss, among other issues, financial questions and on 30 November 1918 the Provisional Government agreed to establish the Estonian mark.

The currency was modeled after Germany as Estonian finances were influenced by German law in 1918.

In 1922 an exchange note (Estonian: vahetustäht) came into circulation that as per regulations, government institutions and agencies were obliged to accept in unlimited quantities and private institutions and persons up to 2000 marks with each payment.

In 1919, treasury notes ("kassatäht") were issued in denominations of 5, 10, 20, and 50 pennies, 1, 3, 5, 10, 25, 50, and 100 marks ("pangatäht").