I don't recall that being a part of Morrowind, could it have been a mod?
No it was not a mod, it was vanilla morrowind, use enchanting on paper and you make a scroll, it was part of using your skills (enchanting) to be a mage, and assisted in managing a limited mana pool.
It was in morrowind for all its expansions and made roleplaying a mage better than it was in oblivion. :thumbsup:
But then again, scrolls were not random loot drops in morrowind. There were few very powerfull scrolls to be found in the world, or you had to buy/make them, and they were not cheap because of the soul gem consumed to make them.
Oblivion made scrolls cheap and trashy. Yet another example of how oblivion dumbed down a perfectly working game mechanic because of a rushed schedule. /shrug