Yes this was the Episode where the Enterprise had completely ran out out of toilet paper and this was a classic Picardian anti-manuer-itch maneuver, which he learned in his time in the Parvenuim system in 'The Inner Light', when he was forced to live in Kataan's bog roll-less environment for 30+ years.
(The madness of the itching, combined with the horrific lack of Earl Grey during this time would eventually force him to distract and occupy himself by learning the flute.)