In order to obtain leather, you must first kill a creature then use a bladed weapon on the body. The Leather Hides will then be placed on the corpse for you to collect. These weigh five stones each, but can be converted to normal "cut" leather by using Scissors on them (reducing the weight down to a stone apiece). Either way leather is stackable.
Another way to harvest leather is to skin creatures with a Skinning Knife equipped. This way, the hides are automatically converted to leather then placed in your backpack. The same effect is also possessed by the Butcher's War Cleaver, except that this weapon is not required to be equipped for the automatic harvesting to "cut leather". Fixed: Note also, that both will leave the cut leather on the corpse being skinned, if the weight of one's equipment is approximately 350 stones or more. This bug is believed to be related to the maximum capacity of backpacks from prior to Mondain's Legacy, but actual confirmation has not been forthcoming from EA.
Hides can be turned in for reward points in the Britain Library Collection.
There are 4 different kinds of leather: Normal, Spined, Horned and Barbed. The three special types give additional properties to Tailor crafted armor:
Creature Drop Rates
Leather is affected by the "double resources" rule in the Felucca ruleset. Also, Humans gain ten percent more leather when skinning (22 instead of 20, 53 instead of 48, etc.), rounded up. For Humans hunting in Felucca, base amount is doubled, then the 10% bonus is applied, for purposes of rounding off fractions.
For example, an elf hunting Giant Serpents in Trammel would get 15 spined leather per kill, while a human hunting the same creatures would get 17 spined leather per kill (15 x 110% = 16.5, rounding up to 17).
In Felucca, against the same creature type, an elf would get 30 spined leather(15 x 2) per kill, while a human would get 33 ((15 x 2) x 110%).